The smart tax-saving method of personal comprehensive income tax is exposed, and the annual income e

The smart tax-saving method of personal comprehensive income tax is exposed, and the annual income exceeds one million to avoid paying taxes
Annual salary of 3 million tax savings Annual salary of 2 million tax savings

If you are an individual living in the Republic of China with income, remember to declare the comprehensive income tax in May every year. Special reminder to you who want to file a tax return. The tax law stipulates that you can deduct some amounts to reduce your tax burden. The deductible is divided into General deductions and special deductions.

There are two ways to declare the general deduction (you can only choose one of the methods to declare), one is to use the standard deduction, that is, the amount stipulated in the tax law is deducted without any supporting documents. Taking 110 years as an example, the deductible The amount is 120,000 yuan for a single person and 240,000 yuan for a joint taxpayer and spouse filing. The other way is to enumerate, if you have donations, life insurance premiums, medical and maternity expenses, disaster losses, interest on loans for purchasing self-use houses, and rents for self-occupied houses in the income year, and the total amount is greater than the previous When the so-called standard deduction is mentioned, you can choose to declare and enumerate the deduction, which is more tax-efficient. (Note: The 110-year comprehensive income tax exemption amount is 88,000 yuan per person per year; 132,000 yuan per person per year for the self, spouse and dependent immediate relatives who are over 70 years old.)

(1) Items that can list deductions

1. Insurance premium
Insurance premiums (including labor insurance, employment insurance, military, public and educational insurance, student safety insurance, farmer insurance, national Annuity insurance), if the payment is made in the year when the deduction is declared, the insured and the proposer are in the same declaration account, the annual deduction amount of each insured is limited to no more than 24,000 yuan, and the actual insurance premiums incurred are less than 24,000 yuan, The actual amount will be deducted, but the national health insurance premiums are not limited by the amount, and those who apply for the insurance as a family member of the insured do not need to be in the same reporting household as the insured.
●Receipts of insurance premiums from the underwriting institution should be attached to the declaration of deductible insurance premiums, and the employee insurance premiums remitted by government agencies or institutions (the part borne by employees) should be attached to the certificate issued by the service unit.
●The taxpayer takes his dependent children as the proposer, and he himself is the insured and pays the insurance premium on his behalf. The insurance premium should be recognized as the personal insurance premium paid by the taxpayer for himself.
●The taxpayer declares the life insurance premiums paid by the immediate family members living abroad and who are supported by them to buy insurance locally, and the original insurance premium receipt and the photocopy of the insurance policy approved by the local government can be used for verification. The above-mentioned receipt or insurance policy shall specify the type of insurance, proposer, insured, premium amount, payment date, etc., and shall be translated and annotated by the taxpayer.
●Category 6 insureds of national health insurance can fill in the insurance premium amount of themselves and their family members on the insurance premium receipts, payment slips or certificates issued by the Central Health Insurance Bureau, and affix their personal seals or signatures, Deductions are enumerated on the basis of declaration of comprehensive income tax insurance premiums.

2. Medical and maternity expenses
You, your spouse and dependent relatives can keep the original receipts for the medical expenses or maternity expenses incurred during the year, as long as the receipts from the National Health Insurance Hospital are eligible, including registration fees and self-paid medical expenses. Declare, and report as much as you want, there is no limit on the amount, just a 100 yuan registration fee receipt, if a 30% tax rate applies, you can save 30 yuan in taxes, the higher the tax rate, the more tax you save, so don’t underestimate it The 100 yuan registration fee receipt will add up to a lot, and after a year of accumulation, the tax savings are also considerable. However, non-medical expenses such as cosmetic surgery cannot be claimed for tax credit. In addition, medical and maternity expenses that are subject to insurance benefits cannot be deducted.
●Payment to public hospitals, national health insurance designated hospitals and clinics, or hospitals whose accounting records are complete and correct as determined by the Ministry of Finance should be accompanied by the original receipt with a letterhead, or 1. If the receipt does not have a letterhead but only the medical record card number A copy of the registration certificate is attached. 2. When the original receipt is lost, a photocopy of the receipt stub issued by the original unit with the words "the photocopy is the same as the original" and the seal of the responsible person shall be provided. 3. Those who submit the receipt to the service agency to apply for subsidies should attach a photocopy of the receipt certified by the service agency.
●Payment to the public or nursing homes and home care institutions that have a contractual relationship with the national health insurance, you can submit the fee receipts issued by them and the doctor's diagnosis certificate to declare the deduction.
●The expense of hearing aids, prosthetic limbs, wheelchairs, etc. installed due to physical and mental disabilities can also be reported as a deduction based on the diagnosis certificate issued by the doctor and the unified invoice or receipt.
●Medical expenses for dentures, dentures or orthodontics due to dental disease can be reported for deduction with the diagnosis certificate and receipt issued by the doctor.
●The expenses paid to the public or the ambulance institutions specially contracted with the National Health Insurance for the ambulance to perform duties in accordance with the Emergency Medical Rescue Law can be reported and deducted with the receipt certificate issued by the ambulance.
●Due to the needs of the disease, the user urgently needs to use special drugs that are not available in the medical institution, and the user who purchases it by himself can present the certificate of hospitalization or medical treatment, the certificate of the name and quantity of the drug approved for outsourcing issued by the attending physician, and a unified invoice with the user's name on it or Receipts, claim deductions.
●If you go abroad for medical treatment due to illness, you can claim the deduction as long as you can submit a certificate issued by a foreign public hospital, a hospital organized by a foundation, or a hospital attached to a public or private university.
●If the taxpayer and his/her spouse or dependent relatives seek medical treatment in the mainland due to illness, the medical expenses paid by the hospital in the mainland can also be claimed as a deduction. When reporting, you can present the certificate issued by a public hospital in mainland China, a hospital organized by a legal person foundation, or a hospital affiliated to a public or private university, and after being verified by the Straits Exchange Foundation as a legal person foundation, the deduction will be enumerated from the total comprehensive income.
●If the taxpayer, spouse or dependent relatives are those who need long-term care due to physical and mental disability and cannot take care of themselves, the medical expenses paid to public hospitals, hospitals and clinics specially designated by the National Health Insurance, or other legal hospitals and clinics may be paid in accordance with the law deduct.

3. Donation fee
For the legal person organizations of public welfare associations and financial groups in accordance with the general provisions of the civil law, or other related laws and regulations, the donations of educational, cultural, public welfare, and charitable institutions or groups registered with the competent authority or established through the special account set up by the central competent authority Donations to specific athletes, and properties established, donated or added to public trusts that meet the requirements shall not exceed 20% of the total comprehensive income.
However, donations related to national defense and the labor force, donations to the government, and the handling of monuments, historical buildings, memorial buildings, buildings in historic monument preservation areas, archaeological sites, settlement buildings, historical sites, cultural landscapes, and antiquities in accordance with the Cultural Assets Preservation Law The donations or sponsorship funds of repairers, reusers or maintenance maintainers, as well as donations to unspecified athletes through a special account set up by the central competent authority, are not limited by the amount, and the original receipts must be attached for verification. Donors who donate purchased land should attach: 1. A certificate issued by the recipient agency, institution or group to receive the donation. 2. The sales contract and proof of payment for the purchase of the donated land, or other sufficient supporting documents.
It should be noted that for political parties, political organizations and potential candidates, commonly known as "political contributions", they can also declare and deduct according to the following regulations:
●According to the Political Contribution Law, the total amount of annual donations made by individuals with the right to vote to the same candidate for election shall not exceed 100,000 yuan, and the total amount of donations made by each reporting household to various political parties, political organizations and candidates for election shall not be deducted If it exceeds 20% of the total comprehensive income declared by each declaring household in the current year, the amount shall not exceed 200,000 yuan. However, for those who have not registered as candidates according to law or whose candidacy has been revoked after registration, the donations, the receipt formats do not match, or the donated political donations are returned by the proposed candidates according to regulations or handed over to the reporting agency for payment, etc. , not recognized.
●Donations to political parties, candidates recommended by political parties who won less than 1% of the votes in the 2019 Legislative Council Election (Democratic Progressive Party, Chinese Nationalist Party, Taiwan People's Party, People First Party, Power of the Times, Taiwan Foundation, New Party, Green Candidates recommended by the party and the One Nation Action Party have achieved 1% of the votes) or those whose receipt format does not match will not be recognized.

4. Disaster loss
If there is an earthquake, wind, flood, drought, cold, fire, landslide, tsunami, plague, insect disaster, war, nuclear disaster, gas explosion, or other unforeseen and inevitable disasters or events that cannot be resisted by humans If you suffer losses, such as damages to your houses, cars, motorcycles, daily household appliances or furniture, remember to take photos and record them immediately and save the scene. The service office declares the amount of loss. When declaring the income tax of the year in which the loss occurred, you can use the disaster loss certificate issued by the National Taxation Bureau to declare the deduction, thereby reducing the income tax you have to pay; if you cannot report to the tax collection agency within the deadline The loss certificate is issued, and those who can produce conclusive evidence to prove that the loss is true can still be verified and determined based on the actual loss. However, the portion subject to insurance compensation or relief funds shall not be deducted.

5. Interest on loans for purchasing houses for self-use
The interest payment of a taxpayer purchasing a house for self-use and handling a loan from a financial institution shall meet the following requirements:
(1) The house is registered as owned by the taxpayer, spouse or dependent relative.
(2) The taxpayer, spouse or dependent relatives have completed the household registration at the address in the year of income (with a copy of the household registration book as evidence), and there is no lease, business or business use.
(3) Obtain the original copy of the interest receipt for the loan paid in the year of income.
(4) If the self-use residence is owned by the spouse, the interest paid by the taxpayer on the loan from the financial institution can only be listed if the taxpayer and the spouse are the same reporting household.
(5) Those who have opened houses with 2 house numbers can only choose one of them for reporting.
The deduction of interest on house purchase loans is limited to one house for each declaring household, and the deduction shall be made on the basis of the actual payment of the interest paid in the year minus the special deduction for savings investment. The annual deduction shall not exceed 300,000 yuan.
If the interest receipt does not specify the address of the house, the owner, the date of acquisition of the house, the name of the borrower or the purpose of the loan, the taxpayer shall make a supplementary note, sign and seal, and present a copy of the building title certificate and household registration information.
Borrowers in the name of "renovation loans" or "consumer loans" are not allowed to report deductions, but if they are indeed used for the purchase of self-use houses and relevant supporting documents can be presented, such as ownership certificates, transcripts of building registration books, etc., they can still be reported . If the loan bank is changed or the contract is changed, only the interest paid within the outstanding amount of the original house purchase loan can be reported, and the relevant supporting documents for the re-loan should be presented, such as the original loan balance certificate, settlement certificate or index of building changes ( Must include photocopies such as before and after re-loan or contract renewal) for verification.

6. Housing rental expenses
For taxpayers, spouses, and declared dependent immediate family members who rent houses in the Republic of China for self-occupation and not for business or business use, the annual deduction amount for each reporting household is limited to 120,000 yuan. However, those who have declared interest on house purchase loans shall not be deducted. And should be attached: 1. The lease contract of the leased house and the photocopy of the payment proof of rent payment (such as: the receipt signed by the lessor, the transaction list of automatic teller machine or the proof of remittance). 2. The taxpayer, spouse or declared dependent immediate family member completed the household registration certificate at the leased address in the tax year, or the taxpayer stated that the leased house was for self-occupation and not for business or business during the tax year Cut-off book for business use.

(2) Difference in basic living expenses
According to the Announcement 110, the basic living expenses per person in 192,000 yuan multiplied by the total amount of basic living expenses calculated by the number of taxpayers, spouses and declared dependent relatives, exceeds all tax exemptions, general deductions, savings and investment declared by taxpayers The total amount of special deduction, special deduction for physical and mental disabilities, special deduction for educational tuition, special deduction for preschool children and special deduction for long-term care can be deducted from the total comprehensive income declared by the taxpayer.

Source: Compiled by the National Taxation Bureau of the Ministry of Finance, the Internet and joint accountants of Jingxun

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