Q：
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What is a one-time annual bonus，What does the one-time bonus include?
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A：
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The one-time annual bonus refers to the one-time bonus paid to employees by withholding agents such as administrative agencies, enterprises and institutions based on their annual economic benefits and comprehensive assessment of their annual work performance.
The above-mentioned one-time bonus also includes year-end salary increase, annual salary and performance-based salary paid by enterprises implementing the annual salary system and performance-based salary method based on assessment results.
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Q：
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Can the quarterly bonuses obtained be considered as a one-time bonus for the whole year?
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A：
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No, it's not possible. Employees who receive various types of bonuses other than one-time annual bonus throughout the year, such as semi-annual bonuses, quarterly bonuses, overtime bonuses, advanced bonuses, attendance bonuses, etc., shall be merged with their monthly salary and income, and shall pay individual income tax in accordance with tax laws.
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Q：
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Can bonuses in different months be combined into a "one-time bonus for the whole year"?
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A：
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No, it's not possible. Within a tax year, this tax calculation method is only allowed to be used once for each taxpayer. Bonuses from different months cannot be merged into one.
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Q：
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How to determine the period of the annual one-time bonus?
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A：
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The one-time bonus falls within the same year in which they are paid. The term “annual” in the annual reconciliation and settlement refers to the year of tax assessment, which is from January 1st to December 31st in the Gregorian calendar.
The income and deductions during the annual reconciliation and settlement refer to the actual income obtained during the time period and the actual expenses incurred that meet the conditions or prescribed standards.
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Q：
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Is the year-end bonus distributed in December of 2023 or January of 2024, with the same treatment for individual income tax?
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A：
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If it is distributed before December 31 of 2023, it belongs to the income of 2023. During the comprehensive income tax settlement and payment period of the year 2023 (March 1 to June 30, 2024), individuals can choose to enjoy separate tax preferential policies or be included in the comprehensive income to calculate income tax for the year.
If disbursed in January 2024, it will be considered as income for the year 2024. During the comprehensive income settlement and payment period of the year 2024 (March 1 to June 30, 2025), the individual can choose to enjoy separate tax preferential policies or be included in the comprehensive income to calculate income tax for the year.
However, it should be noted that within a tax year, the annual bonus tax calculation method is only allowed to be used once for each taxpayer (including employees who have worked for less than one year).
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FAQ
