Many workers will complain about the income tax that individuals have to pay every month, thinking that the taxes and fees that individuals receive are too high, so they want tax planning. In tax planning, we should pay attention to the corresponding methods, and only when the methods are right can we. So, what are the methods of personal income tax planning? I'll explain this knowledge to you. What are the methods of individual income tax planning? I. Clever Use of Provident Fund According to the relevant provisions of the Individual Income Tax Law, the monthly housing provident fund paid by working-class individuals is deducted from the pre-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 fund. Therefore, there is still some room for ordinary employees to increase the deposit of provident fund, and it is reasonable and feasible for wage taxpayers to use provident fund skillfully to avoid tax. It should be emphasized that there are two problems to be paid attention to when using individuals to pay supplementary provident fund for tax avoidance: first, taxpayers should open individual supplementary provident fund accounts in their units; Second, although the supplementary provident fund paid by taxpayers every month avoids taxes, it cannot be withdrawn at will, solidifying personal assets. Pre-tax deduction by donation (1) The Regulations on the Implementation of Individual Income Tax of the People's Republic of China stipulates that individuals donate their income to education and other social welfare undertakings and areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China, and the amount that does not exceed 3% of the taxable income declared by taxpayers may be deducted from their taxable income. That is to say, when individuals donate, they must comply with the laws and regulations in the way of donation, the investment of donation and the amount of donation, so that this part of donation can be exempted from personal income tax. The calculation formula is: donation limit = taxable income *3%, allowable deduction of donation amount = actual donation amount (≤ donation limit). (II) On May 23, 28, State Taxation Administration of The People's Republic of China issued the Notice on the Collection and Management of Personal Income Tax for Individuals Donating to Earthquake-stricken Areas (Guo Shui Fa [28] No.55), which stipulated that individuals who donated money and materials to the disaster-stricken areas through designated institutions can be deducted before tax when paying personal income tax according to the prescribed standards. The specific provisions are as follows: First, donations made by individuals to disaster areas through withholding units shall be deducted by withholding units according to the facts when withholding taxes, based on the summary donation credentials issued by government agencies or non-profit organizations and the detailed list of personal donations recorded by withholding units. Secondly, if individuals directly pay taxes by withholding donations from government agencies and non-profit organizations to the disaster areas, the donors should show the donation credentials issued by government agencies and non-profit organizations to the withholding units in a timely manner, and the withholding units will deduct them according to the facts when withholding taxes; If an individual declares and pays taxes on his own, the tax authorities shall deduct it according to the facts according to law with the receipt of donations issued by government agencies and non-profit organizations. Finally, when the withholding unit declares the full withholding of individual income tax to the tax authorities, it should also submit the summary acceptance certificate (copy) issued by the government agency or non-profit organization, the total donation of each taxpayer in the unit and the amount of donation deducted in the current period. (III) As stipulated in the document Guo Shui Fa [28] No.6 on the "special party dues" for the earthquake, party member responded to the call of the party organization and actively donated money to the disaster-stricken areas in the form of "special party dues". Party member's "special party dues" for earthquake relief paid by individuals through party organizations belong to donations to public welfare and relief undertakings. It is reasonable and feasible that party member's personal donation can be deducted before paying personal income tax according to the individual income tax law and its implementing regulations. Third, the choice of types of wealth management products With the development of the financial market, new wealth management products have been continuously introduced. Many of these wealth management products not only have higher income than savings, but also do not have to pay taxes. For example, investment funds, purchase of government bonds, insurance, education savings, and so on. Numerous wealth management products undoubtedly provide more choices for the working class. Think carefully and then choose: it can not only avoid taxes, but also reasonably disperse assets, and increase the stability and risk resistance of income, which is the wisdom of modern people in financial management. (I) Investment in bonds exempted from personal income tax Article 4 of the Individual Income Tax Law stipulates that the interest on financial bonds issued by debt interest and the state shall be exempted from personal income tax. Among them, debt interest refers to the interest income obtained by individuals holding bonds issued by the Ministry of Finance of China, that is, the interest on treasury bonds; Interest on financial bonds issued by the state refers to the interest income obtained by individuals holding financial bonds issued with the approval of the State Council. In December 27, the annual coupon rate of one-year book-entry treasury bonds was 3.66%; The annual coupon rate of 1-year book-entry special national debt (eight issues) is 4.41%; The coupon rate of the 19th book-entry treasury bonds with a maturity of 3 months is 3.38%, and both yields are good. Financial bonds and treasury bonds issued by countries that choose to invest in 2% personal income tax exemption not only abide by the provisions of the tax law, but also earn some benefits from it. Therefore, buying treasury bonds is a good channel for most working-class people to avoid tax and increase income. (II) Choosing the Right Insurance Project to Obtain Tax Preferences According to the relevant laws of China, residents can enjoy three major tax preferences when purchasing insurance: 1. Housing provident fund and medical insurance premiums withdrawn by individuals according to the proportion stipulated by the state or local government and paid to designated financial institutions are exempt from personal income tax; 2. Because insurance indemnity is to compensate individuals for unexpected and unfortunate losses, it does not belong to personal income and is exempt from personal income tax; 3. Interest income from housing provident fund, medical insurance premium, basic old-age insurance premium and unemployment insurance fund paid according to the proportion stipulated by the state or provincial local government and deposited in personal bank accounts is also exempt from personal income tax. Fourth, taking advantage of the temporary exemption from tax incentives and actively taking advantage of the time difference given by the state to buy and sell stocks or funds, personal income tax is not levied temporarily according to the current tax regulations. This is one of the few items that are temporarily exempted from personal income tax on personal property transfer income at present. Taxpayers can choose their own stocks or funds to buy and sell, and get the difference income by buying low and selling high, thus indirectly realizing reasonable tax avoidance. However, because many taxpayers are not professional financial personnel and do not have professional knowledge, they need to consult experts, learn relevant knowledge in time and act cautiously when adopting this method. 5. Making use of tax preferential policies Tax preferential policies, commonly called tax expenditures or tax expenditures, are the special tax policies given to certain taxpayers by the government through some institutional arrangements in order to support the development of certain regions, industries, enterprises and businesses, or to take care of some taxpayers with practical difficulties. For example, exempt all or part of the taxes that should be paid, or return them according to a certain proportion of the taxes paid, and so on. Generally speaking, the forms of tax preference are: tax exemption, exemption amount, threshold, tax deduction, preferential tax refund, accelerated depreciation, preferential tax rate, break even, tax concession, deferred tax payment, etc. This kind of provision stipulated in the tax law to reduce the tax burden of some specific taxpayers is the preferential tax policy. Vi. Make active use of communication fees, transportation fees, travel expenses, meal fee invoices and other provisions of China's tax law: Any payment of communication subsidies, transportation subsidies and meal-missing subsidies in cash shall be regarded as salary income, included in tax basis, and personal income tax shall be calculated and paid. Everything that has been reimbursed according to the essence of economic business and obtained legal invoices belongs to the normal operating expenses of the enterprise and does not need to pay personal income tax. Therefore, the author suggests that when taxpayers reimburse communication fees, transportation fees, travel expenses and meal fee, they should be reimbursed according to the actual, legal and effective invoices, so as not to mistake the nature of subsidies for tax avoidance to a certain extent. Seven, the use of the year-end bonus tax law, the implementation of the annual salary system and performance pay units, individuals to achieve year-end cash annual salary and performance pay according to the taxpayer's one-time bonus for the whole year, as a single month's salary, salary income calculation and tax payment. However, all bonuses obtained by employees except the one-time bonus for the whole year, such as semi-annual bonus, quarterly bonus, overtime bonus, advanced bonus, attendance bonus, etc., shall be merged with the salary and salary income of the current month, and personal income tax shall be paid according to the provisions of the tax law. This undoubtedly provides taxpayers with a way to avoid taxes. According to the preferential policies in Guo Shui Fa [25] No.9 document, taxpayers can ask their units to pay year-end bonuses at the expense of a part of semi-annual awards, quarterly awards, overtime awards, advanced awards and attendance awards, so as to realize tax avoidance. Note that in a tax year, for each taxpayer, this tax calculation method is only allowed to be adopted once. Eight, through the enterprise to improve the welfare expenditure of employees, enterprises can use non-monetary payment to improve the welfare expenditure of employees, such as providing dormitories (apartments) for employees free of charge; Provide free transportation facilities; Provide employees with free meals, and so on. Enterprises pay these expenses for individual employees, which can be used as expenses to reduce the taxable income of enterprise income tax. Individuals can reduce some taxes that should be borne by individuals without the actual salary level falling, which can be described as double benefits for enterprises. Nine, the use of grade difference, deduction of project calculation, reasonable tax avoidance planning, and strive to maximize profits. The income from labor remuneration, royalties, and property leasing is deducted by grades. If the income is less than 4,. yuan each time, the necessary expenses are 8. yuan; If it is more than 4. yuan, the necessary expenses shall be *(1-2%) of each income. After obtaining the corresponding business, we can make reasonable plans and conclude relevant contracts according to the income to maximize profits.