How to avoid tax on year-end bonus? The latest legal strategy for 2024
As the end of the year approaches, year-end bonuses have become one of the topics of greatest concern to professionals. How to reduce personal tax burden reasonably and legally? This article combines hot discussions and fiscal and taxation policies across the Internet in the past 10 days to provide you with structured solutions.
1. The latest policies on tax calculation methods for year-end bonuses
According to the 2023 extension policy of the Ministry of Finance, the separate tax calculation for year-end bonuses will be extended to December 31, 2027. A comparison of the two tax calculation methods is as follows:
| Tax calculation method | Calculation formula | Applicable scenarios |
|---|---|---|
| Separate tax calculation | Bonus × applicable tax rate – quick calculation deduction | When the annual income is ≤120,000 or the bonus is relatively high |
| Consolidated tax calculation | (Annual income + bonus) × comprehensive tax rate | When annual income is higher and bonus is lower |
2. Six legal tax avoidance methods
| method | Operating Instructions | tax saving effect |
|---|---|---|
| Distributed in installments | Split the bonus into quarterly bonus/half-year bonus | Reduce the single tax base |
| Welfare transformation | Part of the bonus will be converted into physical examination, training and other benefits | Welfare fee pre-tax deduction |
| Deferred issuance | Some bonuses are postponed to January of the following year | Split tax calculation between two years |
| Special additional deductions | Confirm 7 deductions including children’s education in advance | The maximum tax reduction is 54,000 yuan/year |
| Enterprise annuity | Disbursed through supplementary pension insurance | Enjoy tax deferral benefits |
| Charity donation | Donate part of the prize money to charity organizations | 30% of the donation amount will be deducted before tax |
3. Tax avoidance plans for different income levels
Based on the hot topics discussed by finance and taxation experts in the past 10 days, the following grading scheme is recommended:
| annual income range | Optimal tax calculation method | portfolio strategy |
|---|---|---|
| ≤120,000 yuan | Separate tax calculation | The full amount will be paid as year-end bonus |
| 120,000-200,000 yuan | Separate tax calculation + special deduction | Split part merged into salary |
| 200,000-360,000 yuan | mixed tax | 60% bonus + 40% welfare conversion |
| ≥360,000 yuan | Consolidated tax calculation + deferred payment | Disbursed in two years + charity donation |
4. Warning on high-risk tax avoidance behavior
Recent audit cases announced by the tax department show that the following behaviors pose significant risks:
1.offset against false invoices: In 2023, a company was required to pay back taxes and fines totaling 1.27 million yuan.
2.Private account transfer: An executive of a listed company was investigated for distributing bonuses through his personal account.
3.fake donation: Three companies that forged donation certificates were included in the tax blacklist
5. Forecast of policy trends in 2024
Based on the recent opinions of finance and taxation experts, possible future adjustments include:
• Separate tax benefits for year-end bonuses may be capped
• Digital currency issuance is included in the scope of supervision
• Personal pension deduction limit is expected to be increased to 20,000 yuan/year
Reasonable planning of year-end bonus requires comprehensive consideration of income structure, family burden and corporate policies. It is recommended to choose the best plan based on your own situation under the guidance of financial professionals to achieve a balance between legal tax savings and income maximization.
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