State Administration of Taxation: Charitable donation expenses can be deducted during tax year settlement
The Beijing News reported on January 16 that the official website of the State Administration of Taxation, WeChat public account, announced that according to the tax laws, from March 1 to June 30, 2020, taxpayers are required to handle the settlement and settlement of comprehensive income tax for 2019. (Hereinafter referred to as “annual accounting”).
The specific calculation formula is as follows: 2019 annual exchange rebate or payable tax amount =[（综合所得收入额-60000元-“三险一金”等专项扣除-子女教育等专项附加扣除-依法确定的其他扣除-捐赠）×适用税率-速算扣除数]-Tax prepaid in 2019.
It can be seen from the above calculation formula that the donation expenditure can be deducted from the calculation of taxable income. Individual residents deducting public welfare donations from their comprehensive income shall be dealt with in accordance with the following regulations:
(1) Residents who earn salaries and salaries can choose to deduct at the time of withholding and advance payment, or they can choose to deduct at the annual settlement and payment.
If a resident individual chooses to deduct during the withholding and prepayment, the deduction limit should be calculated according to the cumulative withholding method. The deduction limit for the month in which the donation is made is 30% of the cumulative taxable income for the month (the full deduction shall be subject to its provisions) , The same below). Individuals who earn wages and salaries from more than two places, choose one of them to deduct, and cannot change it in the year after the selection.
(2) The income from labor remuneration, manuscript remuneration, and royalties received by individual residents shall not be deducted from public welfare donations when withholding and prepaying, and shall be uniformly deducted from settlement and settlement.
(3) Where a resident individual obtains annual one-time bonuses, equity incentives, etc., and adopts separate taxation methods that are not incorporated into comprehensive income in accordance with regulations, the deduction of public welfare donation expenses shall be treated in accordance with the deduction regulations for classified income in this announcement.
Edit Sun Yong