How is the quick deduction calculated?

Quick deduction refers to a kind of pre-calculated data to solve the complex technical problem of calculating tax amount by grading the excessive progressive tax rate. The taxation feature of the excess cumulative tax rate is that the total taxable amount is divided into several grades, and each grade is calculated according to the corresponding tax rate and tax amount.

More complicated. The simple calculation method is to calculate the total tax payable according to the highest applicable tax rate, and then subtract the quick deduction, and the balance is the tax calculated according to the excessive progressive tax rate. Quick deduction is the difference between the tax calculated at the full progressive tax rate and the tax calculated at the excessive progressive tax rate.

Calculation formula Personal income tax is the tax calculation formula when calculating the income tax with excessive progressive tax rate by quick deduction method:

Taxable amount = taxable income × applicable tax rate-quick deduction

The calculation formula for quick deduction is:

Quick calculation deduction at this level = the highest taxable income at the next higher level × (tax rate at this level-tax rate at the next higher level)+quick calculation deduction at the next higher level.

The personal income tax of the year-end one-time bonus is calculated as follows:

Corresponding tax rate = tax rate corresponding to total bonus income12.

Taxable amount = (salary payable-starting salary) × corresponding tax rate-quick deduction

Methods The accuracy of quick deduction obtained from the above formula can be verified by direct calculation method, and the second level of 7-level excess progressive tax rate applicable to personal income tax wages and salaries is as follows:

① Calculate with the above formula:

3000×( 10%-3%)+0=2 10

(2) Direct calculation method is adopted for calculation.

Taxable amount of full progressive tax rate =3200× 10%=320.

Taxable amount of excess progressive tax rate = (3000× 3%)+(200×10%) =110.

Quick deduction = 320-110 = 210