Preferential policy on Year-End Bonus Extended to 2027

Announcement of the Ministry of Finance and the State Taxation Administration on the Continuation of the Policy on Individual Income Tax for Year-End Bonus - Announcement No. 30 of 2023 by the Ministry of Finance and the State Taxation Administration

In order to further alleviate the burden on taxpayers, the policy on individual income tax for year-end bonus is hereby announced as follows:

1.Resident individuals who receive a year-end bonus, in accordance with the "Notice of the State Administration of Taxation on Adjusting the Method of Calculating and Collecting Individual Income Tax for Year-End Bonus" (GuoShuiFa [2005] No. 9), shall not include the bonus in the annual comprehensive income. The tax shall be calculated separately based on the monthly equivalent amount of the year-end bonus income divided by 12 months, using the comprehensive income tax rate table attached to this announcement, to determine the applicable tax rate and quick deduction. The tax shall be calculated using the following formula: Tax Payable = Year-End Bonus Income × Applicable Tax Rate - Quick Deduction

2.Resident individuals who receive a year-end bonus can also choose to include the bonus in the calculation of the annual comprehensive income for tax calculation.

3.This announcement is valid until December 31, 2027.

Ministry of Finance State Taxation Administration August 18, 2023         

         

Attachment: Progressive Income Tax Rate Table Converted to Monthly Calculation

Level	Monthly Taxable Income Range	Tax Rate (%)	Quick Deduction
1	Up to 3,000 yuan	3	0
2	Over 3,000 yuan to 12,000 yuan	10	210
3	Over 12,000 yuan to 25,000 yuan	20	1,410
4	Over 25,000 yuan to 35,000 yuan	25	2,660
5	Over 35,000 yuan to 55,000 yuan	30	4,410
6	Over 55,000 yuan to 80,000 yuan	35	7,160
7	Over 80,000 yuan	45	15,160

Note: The values are based on the given income ranges and tax rates for progressive income tax calculation. Please consult with local tax authorities for the most accurate and up-to-date information.

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Original Text

财政部 税务总局关于延续实施全年一次性奖金个人所得税政策的公告财政部 税务总局公告2023年第30号

         

为进一步减轻纳税人负担，现将全年一次性奖金个人所得税政策公告如下：

一、居民个人取得全年一次性奖金，符合《国家税务总局关于调整个人取得全年一次性奖金等计算征收个人所得税方法问题的通知》（国税发〔2005〕9号）规定的，不并入当年综合所得，以全年一次性奖金收入除以12个月得到的数额，按照本公告所附按月换算后的综合所得税率表，确定适用税率和速算扣除数，单独计算纳税。计算公式为：

应纳税额＝全年一次性奖金收入×适用税率－速算扣除数

二、居民个人取得全年一次性奖金，也可以选择并入当年综合所得计算纳税。

三、本公告执行至2027年12月31日。

特此公告。

附件：按月换算后的综合所得税率表

财政部 税务总局

2023年8月18日