Calculation method of personal income tax withholding by Baidu Union

I. Individual user tax deduction standards of the Baidu Union
According to the individual income tax law of the People's Republic of China, the personal labor income tax and wage income tax deduction standards are different. The details are as follows:

Personal Labor Income tax payable = (income-deduction) × tax rate

Among them: 1. If the income falls below 4000 yuan, the deduction amount is 800 yuan; 2. If the income exceeds 4000 yuan, the deduction amount is 20% of the income; 3. If the income exceeds 20000 yuan, however, it is rare for an individual webmaster to pay more than 20000 monthly advertising fee.

Example:

When the current month's advertising revenue is 1000 yuan, the taxable amount = (1000-800) × 20% (tax rate) = 40 yuan.

When the income is 3000 yuan, the taxable amount = (3000-800) × 20% = 440 yuan.

When the income is 5000 yuan, the taxable amount = 5000 × (1-20%) × 20% = 800 yuan.

2. Who pays less taxes for individual users and company users?
In addition, according to my understanding, Baidu only deducts taxes on individual members, while company users are different. Because the company does not have "personal labor income tax", all the company's income should be regarded as business income, therefore, Baidu alliance does not deduct taxes from company users. Company users must provide invoices to Baidu (Baidu will pay after receiving the invoices). Company users should report their taxes to the local tax authorities.

In this case, if the same amount of income is exceeded by individual users, is there a higher tax payable by company users?

To solve this problem, you need to first understand the company's tax standards. The company has two types of taxes: Business tax and enterprise income tax.

Business tax = business income × tax rate (business tax, additional education tax, and urban construction tax, totaling about 5.5%)

Enterprise Income Tax = actual Enterprise Income x tax rate

The actual income of an enterprise is the final income after the company's operating costs and expenses are deducted. Because the tax calculation method is complex and the financial statements of small companies are not sound, the self-declared income may be inaccurate. Therefore, tax authorities in many places generally use 13% of the operating income of small-scale companies as the company's actual income. The enterprise income tax rate is divided into three types: 33%, 27%, and 18%. The actual annual income of less than 30 thousand is 18%, and the actual income of less than 30 thousand is 0.1 million.

Simple calculation formula for small companies to pay taxes:

Taxable amount = business tax + Income tax = business income × 5.5% (business tax rate) + (business income × 13%) × 27% (income tax rate)

Therefore, the simple calculation method of the enterprise's individual income tax payable is as follows:

Individual income tax payable = turnover × 9%

Note: this simple calculation method is only applicable to small companies with an actual annual income of less than 0.1 million.

Example:

When the current month's Baidu advertising revenue is 1000 yuan, the taxable amount = 1000 × 9% = 90 yuan.

When the income is 3000 yuan, the taxable amount = 3000 × 9% = 270 yuan.

When the income is 5000 yuan, the taxable amount = 5000 × 9% = 450 yuan.

The comparison shows that when the income increases, the individual user pays more taxes. So what is the critical point?

Assume that the critical point is X, and the calculated equation (A-800) * 20% = A * 9% gets A = 1455.

Conclusion: when the advertising revenue for the current month is less than 1455 yuan, the individual user pays less tax. When the revenue is more than 1455 yuan, the company user pays less tax.

Aside: Some friends may not understand why the personal tax is higher than the company's when the income is higher. In fact, this is true for all countries in the world. The higher the individual income, the higher the tax payable ratio. This aims to reduce the gap between the rich and the poor and promote harmony. Enterprise Income is the return of enterprise investment. The larger the enterprise income, the greater the return to society (for example, to promote employment), the tax rate for enterprises is also fixed, the tax rate for an enterprise is the same as that for an enterprise with an income of 1 million and an income of 10 million.