Expert Insight - Institute - 北京中誠睿智稅務師事務所有限公司有限公司

Annual lump-sum bonu影書ses refer to lump-su睡煙m bonuses paid to employees b這秒y administrative organs, enterpris車南es and institutions ba們玩sed on their annual economic be技湖nefits and comprehensive assessm一年ent of their annual wor工快k performance, and also incl喝樂ude year-end salary inc暗長reases, annual salary and p東廠erformance salary pai弟友d by units implementing the annual件報 salary system and perfo子物rmance pay scheme based o弟輛n the assessment.

Until 31 December 2023, resident著店 individuals can choose to pay鐵拿 individual income tax on好用 their annual lump sum bonuses separa術河tely (hereinafter referred to a冷麗s "separate taxation"), o長朋r they can choose to pay in月美dividual income tax 金煙on their annual lump sum bonuses by c子喝ombining them with their co用西mprehensive income for the year (here大紙inafter referred to as "combining 又嗎them with their comprehens拍工ive income").

Today, we will take a look at t鄉北he difference betwee購兵n taxation of annual 森匠lump sum bonuses separately and ta學讀xation of integrated income w內些ith Hua Zheng

The 話姐annual lump sum bonus wil還低l be taxed as part of the curren地爸t year's comprehensive incom機懂e, which is beneficial to A, 鐘場while the annual lump sum bonus 件慢will be taxed separately, whi睡這ch is more beneficial to B. Ther上從efore, the choice of taxation method f書黑or the annual lump sum bonu照子s should be judged on the ba裡媽sis of each individual's comp醫看rehensive income for the year, and 民雨the choice of whether to include t裡員he annual lump sum b書土onus in the comprehensiv錯劇e income can be made at the time of林信 annual tax remittance

Concerns

The annual lump sum bonus is taxed as林購 a separate month of salar黑數y and wages and is only allo也微wed to be used once in a tax year.