How Do I Get a Tax Lien Release?

Allowances are also called tax deductions. Refers to the amount of tax exemption from the total amount of taxable objects specified in the tax law. Regardless of the amount of taxable objects, no tax will be levied if it does not exceed the exemption amount; if it exceeds, it will be taxed in excess of its share. Relative to the threshold, the allowance is a more common form of care for taxpayers. The purpose is often to take care of the most basic needs of the taxpayer, so that the most basic needs of the taxpayer will not lose protection due to taxation. For example, China provides for exemptions in the personal income tax law. The law stipulates that "the balance between wages and salaries, minus 3500 yuan (formally implemented from September 1, 2011) (applicable to wages and salaries), is the taxable income.

Allowance

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Allowances are also called tax deductions. Refers to the amount of tax exemption from the total amount of taxable objects specified in the tax law. Regardless of the amount of taxable objects, no tax will be levied if it does not exceed the exemption amount; if it exceeds, it will be taxed in excess of its share. Relative to the threshold, the allowance is a more common form of care for taxpayers. The purpose is often to take care of the most basic needs of the taxpayer, so that the most basic needs of the taxpayer will not lose protection due to taxation. For example, China provides for exemptions in the personal income tax law. The law stipulates that "the balance between wages and salaries, minus 3500 yuan (formally implemented from September 1, 2011) (applicable to wages and salaries), is the taxable income."

The provision of the exemption is to cater for the minimum needs of taxpayers and to make the tax burden more reasonable and fair. For all types of tax that are exempted, the tax exemption shall be deducted from the total taxable amount of the taxpayer, and then the taxable amount shall be calculated according to the prescribed tax rate for the part exceeding the exemption. The exemption is different from the threshold. The threshold is the non-taxation of the taxable object that has not reached the threshold. The taxable amount is the full amount if it reaches or exceeds the threshold. Some are not taxed, and those exceeding the exemption are only taxed for the excess.

The State Council of the People's Republic of China revised and promulgated the "Interim Provisions on the Bonus Tax of State-owned Enterprises" in July 1985, stipulating that for state-owned enterprises that have not implemented floating wages linked to economic benefits, their annual bonuses will not exceed four months of standard wages per person. , Tax exemption; bonus tax is levied on standard wages over four months. At that time, the standard monthly salary was set at 60 yuan. Therefore, the state-owned enterprise bonus tax exemption amount is 240 yuan, that is, the total amount of bonuses per capita for the year does not exceed 240 yuan per capita, the bonus tax is exempt.