Dissolution of the labor contract of economic compensation deduction of individual income tax

The laborers from the termination of labor relations in the economic compensation to tax deduction? What is the standard? This is the workers in the face to remove when labor contract problem. The economic compensation for termination of the labor contract of the tax deduction? How buckle? Dissolution of the labor contract of economic compensation tax deduction have what standards? Beijing labor lawyer Shen Binti on this issue and we chat.

According to the law of our country and my personal legal practice can be summarized as: personal and employment, career, organs, enterprises and social group and the employer terminate the labor relationship, the one-time compensation income obtained (including economic compensation, living allowance and other subsidies cost) involved in the personal income tax two case:

1, for the enterprise has reached a certain age, has a certain age or approaching retirement age workers internal Tuiyang pay one-off living subsidies, as well as the company pays to remove labor contract one-time economic compensation and the expenditure, including buyouts expenditure, in principle can be deducted before duty of enterprise income tax. Various compensatory spending large amounts, influence the one-off amortization for the enterprise income tax is bigger, can in the future annual uniform apportionment. The amortization period, determined by each province according to the actual situation of the local tax bureau. For example, Fujian province clearly states: enterprises according to relevant laws and regulations of the state to declare bankruptcy, compensation of workers from bankrupt enterprises (listed in the State Council pilot city industrial enterprise bankruptcy to the workers called "relocation"; not included in the pilot enterprises and is included in the pilot city but not Industrial Corporation said "economic compensation") income, exempt from personal income tax.

Gold income one-time economic compensation 2, man made because the termination of labor relations and the employing unit, including the unit's economic compensation payment, living allowance and other benefits costs, its income in the local average wage of workers within the year 3 times the amount of the part, shall be exempt from individual income tax. Related to the legal basis is the Ministry of Finance and the State Administration of Taxation in 2001 published the "one-time compensation income from personal income tax on individuals and employer terminate the labor relationship has the notice" clearly stipulates: "the one-time compensation income obtained by individuals due to terminate the labor relationship and the employer (including the payment of the employer economic compensation, living allowance and other benefits costs), its income within the local average wage workers in 3 times the amount of the previous year, exempt from personal income tax."

For the income of a one-time economic compensation achieved by individuals in more than a year local worker average wage of 3 times the amount of the outside part of the calculation of personal income tax should be. The specific method is: the average for individuals to obtain a one-time economic compensation income in the calculation of personal income tax, individuals in the units of length of service, with its quotient as the individual monthly salary, calculate the individual income tax in accordance with the provisions of the tax law. The individual is calculated according to actual work experience in the enterprise work experience, more than 12 years according to the calculation of 12. The legal basis for the Ministry of Finance and the State Administration of Taxation on income from "dissolution of the labor contract to make economic compensation levy personal income tax issues notice" provides that: "taking into account the one-time economy compensation income individuals to obtain large amount, and the laid-off personnel may not have fixed income, over a period of time, therefore, for a one-time economic compensation income obtained by the individual, can be regarded as a good months of wage, salary income, allowing the average within a certain period of time".

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The author of this article: Beijing labor dispute arbitration professional lawyer Shen Binti (reprint please indicate the original author: Shen Binti)

Office address: Beijing City 26 Chaowai Street, MEN Finance & Trade Center building B block 8 layer with law firm

Electronic mailbox:Shenbinti@yahoo.com.cn

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