Two Misunderstandings In Personal Income Tax Calculation Of Housing Provident Fund

The Ministry of Finance and the State Administration of Taxation on the basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums and housing provident fund policies on personal income tax (tax [2006] 10) stipulates that units and individuals should not deduct the actual accumulation of housing provident fund within the range of 12% of the average monthly salary of their employees in the previous year.

The monthly average wage paid by the unit and the staff and workers to the housing provident fund shall not exceed 3 times the monthly average wages of the workers in the cities where the workers are located in the previous year, and the specific standards shall be implemented in accordance with the relevant provisions of the localities.

Although the maximum amount of the provident fund can be paid by 5 times the monthly average wage of the previous year and the proportion of the highest 20%, the recognition of personal income tax can only be deducted from the monthly average wage of the worker (not more than 3 times the monthly average wage announced in the previous year), multiplied by 12%.

Misunderstanding of personal income tax calculation of provident fund:

Example: a company employee Xiao Li, the monthly salary of 10000 yuan, provident fund deposit base is 9000 yuan (Xiao Li's monthly average salary last year), the deposit ratio is 20%, the unit provident fund is 9000 * 20%=1800 (yuan), personal payment provident fund is 1800 yuan, total 3600 yuan.

The average monthly wage of the workers in the past year was 4000 yuan, 3 times 4000 x 3=12000 yuan, so the deposit base 9000 yuan did not exceed the upper limit stipulated in the tax, but the provident fund deposit ratio exceeded the upper limit of 12%.

Regardless of other factors, the calculation of Xiao Li's personal income tax.

Some enterprises calculate this way, and the reserve fund deducts the quota = the average monthly wage of workers last year is 3 x 12%=4000 x 3 x 12%=1440 (yuan), the actual payment is 1800 yuan, so the deductible amount is 1800-1440=360 (yuan).

Xiaoli personal income tax payable = (10000-1800) +360 * 2-3500=5420 (yuan), this calculation is wrong, the correct algorithm is: provident fund can deduct the amount of =9000 x 12%=1080 (yuan), the actual payment of 1800 yuan, so the deductible amount is 1800-1080=720 (yuan).

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Taxable income = (10000-1800) +720 * 2-3500=6140 (yuan).

Document No. 10 stipulates that "within the range of 12% of the average monthly salary of the employees themselves, the allowable monthly payment of housing provident fund can not be more than 3 times the monthly average wage of the workers in the cities where the workers are located." that is, the reserve fund deducted from the taxable income of individuals is 3 times that of the employees in the area where the workers are located. The 9000 yuan deposit base does not exceed 3 times the monthly average wage of the workers in the previous year, which is in line with the provisions of the document. The deductible amount of 1080 yuan is correct, and the deductible amount can not be calculated by 12000 * 12% for 12%=9000. Why is the first algorithm wrong, because the tax [2006?

If it exceeds 3 times the average monthly salary of the workers in the previous year, assuming that it is 15000 yuan, the amount deducted from the provident fund is 12000 x 12%=1440 (yuan), which is the limit in the first algorithm.

Therefore, the amount deducted from the provident fund is not always in accordance with "

* the maximum limit deposit ratio is calculated.

How can I calculate it? I see that people have listed many cases to explain how to calculate. Actually, it is not so troublesome. The author summarizes the following formula:

The amount deducted from the personal income tax of the provident fund is (= "the actual payment base" and "the average monthly wage of the workers in the previous year" 3 times "lower") (("actual payment ratio" and "12%" lower).

According to the above examples, the "actual payment base" is 9000 yuan, "3 times the average monthly wage of the workers in the previous year" is 12000 yuan, the lower is 9000, the "actual contribution rate" is 20%, the lower is 12%, therefore, the sum of the reserve fund can be deducted =9000 * 12%=1080 (yuan).

Another calculation is made, assuming that the deposit base is 15000, more than 3 times 12000 of the average monthly wage of the workers in the previous year, and the deposit ratio is 5%. The "lower 12000" X "lower 5%" can be deducted from the sum, and the method of calculating the quota with 12000 * 12% can not be used.

All other cases can be calculated according to the above formula, and the limited space will not be repeated. Friends who are interested can check it.

In the actual work of the financial sector, when calculating personal income tax, it is usually the use of wages to deduct the personal payment of social security premiums and the balance of personal income tax to calculate the taxable income of personal income tax.

Therefore, it is relatively unfamiliar for the unit to pay the excess fund for individuals, and the tax deduction is not familiar.

According to the above example, the amount that can not be deducted is 1800-1080=720 (yuan), which is only part of the individual, and the part of 720 yuan of the unit must also be calculated. The unit pays 1800 yuan for the individual, and it can only deduct 1080 yuan, and it also needs to increase 720 yuan.

Pay attention to fiscal [2006] 10, "units and individuals are not exceeding the average monthly salary of 12% in the previous year". Therefore, we should not only adjust the personal payment part, but also pay attention to the unit payment.

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