(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 by the withholding unit based on the summary donation receipt issued by the government agency or non-profit organization, the individual donation detailed list recorded by the withholding unit, etc.

When withholding and paying taxes, deduct them in accordance with the law.

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

When paying taxes, deductions shall be made in accordance with the law; if individuals declare taxes on their own, the tax authorities shall make deductions in accordance with the law based on receipts of donations issued by government agencies or non-profit organizations.

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 government agency or non-profit organization, each taxpayer in the unit

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

(3) For earthquakes, special party dues? According to Guoshuifa [2008] No. 60 document, the majority of party members responded to the call of the party organization and actively donated money to the disaster-stricken areas in the form of special party dues.

The special party dues for earthquake relief paid by individual party members through the party organization 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.

4. Take advantage of the temporary tax exemption and actively use the time difference provided by the state to avoid taxes. According to the current tax regulations, personal income tax is temporarily not levied on the price difference income obtained by individual investors from buying and selling stocks or funds. This is currently the smallest tax on income from the transfer of personal property.

One of several items that are temporarily exempt from personal income tax.

Taxpayers can choose stocks or funds that suit them for trading, and gain income from the price difference by buying low and selling high, thereby indirectly achieving reasonable tax avoidance.

However, because many taxpayers are not professional financial personnel and do not have professional knowledge, they need to consult experts when using this method, learn relevant knowledge in a timely manner, and proceed with caution.

5. Use preferential tax policies. Tax preferential policies, commonly known as tax expenditures or tax expenditures, are intended by the government to support the development of certain specific regions, industries, enterprises and businesses, or to provide assistance to certain people with practical difficulties.

Taxpayers provide care and provide special tax policies to certain taxpayers through some institutional arrangements.

For example, exempt all or part of the taxes they should pay, or give them a refund based on a certain proportion of the taxes they pay, etc.

Generally speaking, the forms of tax preferences include: tax exemptions, tax exemptions, thresholds, tax deductions, preferential tax refunds, accelerated depreciation, preferential tax rates, profit and loss offsets, tax concessions, tax deferrals, etc.

Such provisions in the tax law to reduce the tax burden of certain taxpayers are tax preferential policies.

6. Actively use invoices for communication expenses, transportation expenses, travel expenses, and missed meals to avoid taxes. my country’s tax law stipulates that any communication subsidies, transportation subsidies, and missed meal subsidies paid in cash shall be regarded as salary income and included in the tax calculation basis. , calculate and pay personal income tax.

All expenses incurred based on the actual nature of the economic business and legal invoices obtained are reported as normal operating expenses of the enterprise and do not need to pay personal income tax.

Therefore, the author recommends that when taxpayers reimburse communication expenses, transportation expenses, travel expenses, and meal breaks, they should use actual, legal, and valid invoices to avoid mistaking the nature of subsidies and achieving tax avoidance to a certain extent.

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7. Use year-end bonuses to achieve tax avoidance. The tax law stipulates that for units that implement an annual salary system and performance-based pay, the annual salary and performance-based pay that an individual receives at the end of the year will be calculated as a one-time bonus for the year obtained by the taxpayer, and will be taxed separately as one month's salary and salary income.

However, in addition to the one-time annual bonus, employees receive various other types of bonuses, such as half-year bonuses, quarterly bonuses, overtime bonuses, advanced awards, attendance bonuses, etc., all of which are combined with the monthly salary and salary income, and personal income tax is paid in accordance with tax laws.

This undoubtedly provides taxpayers with a way to avoid taxes.

According to the preferential policies of Guoshuifa [2005] No. 9, taxpayers can require the unit to issue year-end bonuses at the expense of part of the half-year bonus, quarterly bonus, overtime bonus, advanced bonus, and attendance bonus to achieve tax avoidance.

Note that within a tax year, this tax calculation method is only allowed to be used once for each taxpayer.