Pay attention! These two types of taxpayers do not require annual final settlement.

According to the notice of the state administration of taxation on matters relating to the final settlement of the comprehensive income tax of the year 2019 (hereinafter referred to as the announcement), on March 1, 2020 and June 30, the corporate taxpayers shall handle the final settlement of the comprehensive income tax of the year 2019. So, who does not need to deal with annual final settlement? Let’s get studies…

Generally speaking, as long as the taxpayer has paid tax in advance at ordinary times and the annual tax payable is not consistent, all need to deal with the annual final settlement. Lightens the burden of taxpayers, dividend, sustained release reform of the state council special clear in the part of the needs of low-income taxpayers from annual settlement obligations, the ministry of finance, administration of taxation issued the accordingly on the personal income tax, comprehensive income liquidation announcement of related policies and related issues (no. 94, 2019, hereinafter referred to as the “tax bulletin no. 94”), refinement has been clear about the exemption of annual income. Article 2 of the notice, in accordance with these provisions, identifies taxpayers who are not required to make the 2019 annual settlement.

For part of the taxpayers who should have handled the annual final settlement and need to pay taxes, the obligation of handling shall be exempted.

Including:

1. As listed in paragraph 1 of article 2 of the notice, as long as the total annual income of a taxpayer does not exceed 120,000 yuan, no matter how much amount of tax is paid, the taxpayer does not need to deal with the annual settlement.

2. As listed in item 2 of article 2 of the notice, as long as the amount of tax payment is not more than 400 yuan, no matter the level of annual comprehensive income, the taxpayer is not required to handle the annual accounting.

Notice: Article 2. “taxpayers whose pre-paid tax amount is the same as the annual tax payable or who do not apply for the annual tax rebate” as stipulated in paragraph 3 of article 2.

If the taxpayer has paid the tax in advance at ordinary times and the annual tax payable is exactly the same, neither tax refund nor tax payment is required, and there is no need to deal with the annual accounting.

If the taxpayer voluntarily gives up the refund, there is no need to deal with the annual settlement.

Tips: If the taxpayer is not quite clear to remember oneself year income exactly has how much, or does not know how ability calculates oneself should fill tax or drawback, fill how much or refund how much, whether to accord with the condition that avoids to deal with, can adopt the following way to give solve.

1. A taxpayer may make a request to the withholding entity. In accordance with the provisions of the tax law, the entity has the responsibility to inform the taxpayer of the income already paid and the amount of tax already paid in advance.

2. Taxpayers can log on to the online tax bureau (including mobile income tax APP) to check their income and tax return details in 2019.

3. When handling the annual financial settlement, the tax authority will provide the taxpayer with the pre-filling service of the declaration form according to certain rules through the online tax bureau. If the taxpayer has no objection to the pre-filling information, the system will automatically calculate whether the tax should be paid or refunded, and the taxpayer can know whether he meets the exemption policy requirements.

Ready to Start and Launch a Business in China? So Are We.

SMEsChina teams focus on the growth of enterprise and providing a variety of business solutions in the area of strategy consultancy, WFOE setting up services, business registration, company formation, incorporation of domestic invested enterprise, finance and audit services, HR and payroll, corporate bank account, resident permit, immigration and visa, trademarks and legal compliance.

China is attracting more and more foreign companies, SMEs,entrepreneurs, startups, brands to invest and establish their business entities through reforming various laws and regulations actively. More than 47 million companies and small medium enterprises have registered their business entities in mainland China and over 3.5 million new enterprises are incorporated during each financial year with comfortable process of registering companies. Here SMEsChina is sharing our knowledge and business insights to global enterprises and companies for better learning the regulations and rules of China corporations running and corporate maintaining. All reference and guidance collected by SMEsChina Teams in accordance with the latest implemented laws of the People’s Republic of China on Wholly Foreign-Owned Enterprises ( WFOE ), Joint Venture ( JV ) and Limited Liability Company ( LLC ), Limited Liability Partnership ( LLP ), and other relevant and officially promulgated regulations and rules on the corporation formation and registration of industrial and commercial enterprises and related IP laws, immigration and resident policies ( VISA ), tax laws.

SMEsChina teams happy to work around you and look after your daily China operations confidently and smoothly. Check if setting up a private company is right for you, if you have everything to set up a business in Mainland China, you can get in touch with our teams to get more useful information and online guidance.

Recent Insights and Publications

The Most Popular Tags of Corporate Type

Other Topics and Categories