There are two ways to calculate personal income tax for annual one-time bonus according to employees' salary income in the current month.
More than 3500 yuan
If the monthly income is higher than (or equal to) 3,500 yuan, the applicable formula is: personal income tax payable = employee's one-time bonus in the current month × applicable tax rate-quick deduction.
The applicable tax rate is determined by dividing 12 by the one-time bonus obtained by the individual in the current month. For example, the year-end bonus does not exceed 18000 yuan, divided by 12 and does not exceed 1500 per month, and the applicable tax rate is 3%. For example, if your monthly salary exceeds 3,500 yuan and you get a year-end bonus of 8,000 yuan, you have to pay taxes: 8,000× 3%-0 = 240 yuan. If you get the year-end bonus of 12000 yuan, you have to pay taxes: 12000×3%-0=360 yuan.
Less than 3500 yuan
If the employee's salary income in the month when the year-end bonus is issued is less than 3,500 yuan, the taxable income should be calculated first: the one-time bonus for the whole year-"the difference after deducting expenses from the salary income in the month".
Then calculate the applicable tax rate: taxable field amount ÷ 12, and use the obtained results to find out the tax rate and quick deduction according to Table 2.
The third step is to calculate how much tax to pay: personal income tax payable = taxable income × applicable tax rate-quick deduction.
Legal basis: According to the provisions of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Adjusting the Method of Calculating Individual Income Tax for Individuals Obtaining Annual One-time Bonuses, the taxable amount of year-end bonus is: the taxable amount of annual one-time bonus = the annual one-time bonus obtained in the current month × the applicable tax rate-quick deduction, where the applicable tax rate is the tax rate corresponding to the year-end bonus and the quick deduction divided by 12.