2025.02.****26

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introduction：此次《办法》延续了历年办理个人所得税综合所得汇算清缴事项公告的主要内容，变化不大，但也有些新特点。

Author: First Finance Chen Yikan

The annual individual income tax settlement and payment, set to commence this month, is introducing significant new regulations.

On [specific date], the State Taxation Administration issued the "Measures for the Annual Reconciliation of Individual Income Tax Comprehensive Income" (hereinafter referred to as the "Measures"), clarifying matters related to the annual reconciliation of individual income tax, including tax refunds (or supplementary payments), which came into effect immediately.

The current "Measures" largely continue the main content of the previous years' announcements on handling the final settlement of comprehensive income tax for individuals, with minimal changes, but there are some new features.

An official from the State Taxation Administration explained that the new measures place greater emphasis on protecting taxpayers' legitimate rights and interests, more clearly define the rights and obligations of all parties involved in the final settlement, and provide better legal safeguards for the service and management of the final settlement. For example, the measures require tax authorities and their staff to keep taxpayers' relevant tax information confidential in accordance with the law and outline legal remedies available to taxpayers if their rights and interests are violated.

The annual comprehensive income tax settlement will begin on [Month] [Day] and end on [Month] [Day] this year. Currently, individuals can schedule an appointment to complete the tax settlement between [Month] [Day] and [Month] [Day]. After [Month] [Day], no appointment is needed to process the tax settlement.

According to previous related studies, nearly half of the individuals who file the annual tax settlement will receive a tax refund. Therefore, for most people, completing the annual individual income tax settlement in a timely manner allows them to enjoy the tax refund as early as possible.

Of course, not everyone is required to file a final settlement for individual income tax. For instance, Article 6 of the "Measures" specifies four scenarios where a final settlement is unnecessary, such as when the annual comprehensive income does not exceed a certain amount and requires a tax supplement through settlement, or when the tax supplement from the annual settlement does not exceed a specified amount. In these cases, individuals are exempt from filing a final settlement for their comprehensive income tax.

There are three categories of individuals who must complete the annual reconciliation. The first category includes taxpayers whose prepaid taxes exceed the actual tax owed and who need to apply for a tax refund. The second category comprises taxpayers whose prepaid taxes are less than the actual tax owed and who must pay the difference, provided the amount exceeds a certain threshold. The third category consists of taxpayers who, due to special circumstances such as incorrect classification of income items, failure of withholding agents to fulfill their legal obligations, or absence of withholding agents for comprehensive income, have underreported or failed to report their comprehensive income for the year and must complete the annual reconciliation truthfully in accordance with the law.

Taxpayers should accurately report information related to special additional deductions and other details, and not blindly trust so-called "tax refund tips" that involve fraudulent claims for refunds by falsely declaring information. Under the scrutiny of big data tax supervision, false reporting can easily be detected, leading to the recovery of unpaid taxes and late fees. In severe cases where corrections are refused, it may result in investigations, fines, and other penalties.

The State Taxation Administration released a "Case Alert on Annual Individual Income Tax Reconciliation," disclosing instances where individuals were caught falsely claiming special additional deductions—such as those for serious illness medical expenses, children's education, home loan interest, housing rent, continuing education, and elderly support—to fraudulently obtain tax refunds.

This year, the tax authorities will continue to implement priority tax refund services. Specifically, for taxpayers who meet the conditions for settlement refunds and face significant financial burdens—such as those supporting both elderly parents and young children, those with heavy medical expenses, those experiencing a substantial drop in income, and those with an annual income below a certain threshold who have already prepaid personal income tax—the tax authorities will provide more convenient priority refund services.

The State Taxation Administration reminds taxpayers that incorrect or invalid bank card information submitted is one of the major reasons for tax refund failures. The bank card used for processing tax refunds should be one opened by the taxpayer themselves within China. It is recommended that taxpayers provide Class I bank accounts and ensure their cards are in normal status.

Additionally, this year's annual tax settlement has introduced services such as pre-filled information for taxpayers, including the tax-advantaged identification codes for commercial health insurance in personal income tax, and a nationwide one-stop declaration and deduction service for personal pensions, aiming to provide taxpayers with a better filing experience.

While most people receive tax refunds, a small number may need to pay additional taxes. Generally, if a taxpayer has income from sources other than wages and salaries—such as labor remuneration, author's remuneration, or royalties—the combined total may push them into a higher tax bracket than the rate applied during prepayment, resulting in additional taxes owed. It is important to pay any owed taxes promptly to avoid late fees or even penalties, as the consequences outweigh the benefits of delay.

WeChat editor | 格蕾丝

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