It is the obligation of every citizen to pay personal income tax through reasonable avoidance of personal income tax. However, while fulfilling the obligation to pay personal income tax, people should also know how to use various means to increase the comprehensive financial income of the family and conduct reasonable personal income tax avoidance, especially

As income increases, reasonable and legal tax avoidance through tax planning is also one of the effective financial management methods.

Avoid paying personal income tax: 1. Cleverly use provident funds to avoid taxes. According to the relevant provisions of the Personal Income Tax Law, the housing provident fund paid by working-class individuals every month is deducted before tax, which means that the housing provident fund paid according to the standard is not taxed.

At the same time, employees can pay supplementary provident funds.

Therefore, there is still some room for ordinary employees to increase their provident fund contributions, and it is reasonable and feasible for salaried taxpayers to use provident funds to avoid taxes.

It needs to be emphasized that there are two issues that should be paid attention to when using personal supplementary provident funds to avoid taxes: First, taxpayers must open a personal supplementary provident fund account in their unit; second, although taxpayers pay monthly supplementary provident funds to avoid taxes, they cannot

Withdrawal at will solidifies personal assets.

2. Use donations for pre-tax deductions to achieve tax avoidance (1) The "Regulations on the Implementation of Individual Income Tax of the People's Republic of China" stipulates that individuals will use social groups and state agencies in China to donate their income to education and other social welfare undertakings, as well as those who suffer

Donations to areas affected by severe natural disasters or poverty-stricken areas can be deducted from the taxable income if the amount does not exceed 30% of the taxpayer's declared taxable income.

This means that when individuals make donations, they must comply with regulations in terms of donation method, donation direction, and donation amount, so that this part of the donation can be exempted from personal income tax.

The calculation formula is: donation limit = taxable income × 30%, donation amount allowed to be deducted = actual donation amount (≤ donation limit).

(2) On May 23, 2008, the State Administration of Taxation issued the "Notice on Individual Income Tax Collection and Administration Issues Concerning Individual Donations to Earthquake-Stricken Areas" (Guo Shui Fa [2008] No. 55) in response to the 8.0-magnitude earthquake in Wenchuan, Sichuan. The notice stipulates that if an individual

Donations of money and materials to disaster areas through designated institutions can be deducted before tax according to the prescribed standards when paying personal income tax.

The specific provisions are as follows: First, for donations made by individuals to disaster areas through the withholding unit, the withholding unit shall submit the donation to the disaster area on behalf of the withholding unit based on the summary donation receipt issued by the unit or non-profit organization, the individual donation details recorded by the withholding unit, etc.

When withholding and remitting taxes, the tax will be deducted in accordance with the law.

Secondly, if an individual directly makes a donation to a disaster area through a unit or non-profit organization and pays taxes through withholding, the donor should promptly present the donation receipt issued by the unit or non-profit organization to the withholding unit, and the withholding unit will withhold and pay the tax.

The tax authorities will deduct the donation in accordance with the law and the facts when making the payment; if an individual declares taxes on his own, the tax authorities will deduct the donation in accordance with the law based on the receipt of donation issued by the unit or non-profit organization.

Finally, when the withholding unit declares personal income tax withholding for all employees and in full to the tax authorities, it should also submit the summary receipt of donations (copy) issued by the unit or non-profit organization, and the receipts of each taxpayer in the unit.

The total amount of donations and the amount of donations deducted in the current period.

(3) "Special Party Dues" for the Earthquake: Guoshuifa [2008] No. 60 stipulates that the majority of party members respond to the call of the party organization and actively donate to the disaster-stricken areas in the form of "special party dues."

The "special party dues" paid by individual party members for earthquake relief through party organizations are donations to public welfare and relief undertakings.

The amount of donations made by individual party members can be deducted before paying personal income tax in accordance with the provisions of the Personal Income Tax Law and its implementation regulations. This is reasonable and feasible.

3. Types of tax avoidance products available for financial management With the development of the financial market, new financial management products are constantly being launched.

Many of these financial products not only have higher returns than savings, but are also tax-free.

For example, investing in funds, buying treasury bonds, buying insurance, saving for education, etc., to name a few.

Numerous financial products undoubtedly provide working-class people with more choices.

You can achieve this by thinking carefully before choosing: not only can you avoid taxes, but also reasonably diversify assets, and also increase the stability and risk resistance of income. This is a wise move for modern people to manage finances.

(1) Tax-free and preferential interest rate savings deposits for education account for as much as 80% of the total liquid assets of many working-class people. However, coupled with interest collection, bank charges, etc., the deposit interest rate has been compressed to a very low level. Originally,

After deducting the 5% tax from the very small interest, there is not much left, which is really not cost-effective for the working class.

Faced with a tax cost of up to 20% on savings deposit interest income, education savings with an interest rate discount of more than 25% will be a good financial management tool for the working class.

(2) Choose bond investments that are exempt from personal income tax. Article 4 of the Personal Income Tax Law stipulates that interest on government bonds and financial bonds issued by the state are exempt from personal income tax.