2025 Individual Income Tax Final Settlement and Refunds Begin: Different Tax Calculation Methods Affect Refund and Additional Payment Amounts

2026-03-09 01:42:25

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On March 1, 2025, the comprehensive individual income tax settlement and payment for the year officially begins. Taxpayers who need to handle it between March 1 and March 20 can make an early appointment through the Individual Income Tax APP starting February 25; from March 21 to June 30, taxpayers can log in to the APP to handle the 2025 comprehensive income tax settlement without an appointment.

The individual income tax settlement refers to residents combining their income from wages, labor services, author’s remuneration, and royalties within a tax year, calculating the total after pre-paid taxes, “checking for omissions, summarizing income and expenses, calculating annually, and adjusting for overpayment or underpayment.” Situations requiring settlement include: when pre-paid taxes exceed the annual tax payable and a tax refund is requested; or when the total comprehensive income exceeds 120,000 yuan within the tax year and the additional tax owed exceeds 400 yuan.

Taxpayers should note that separate taxation and combined taxation may affect the final result. Separate taxation means that residents can choose to treat their one-time annual bonus separately from the comprehensive income for that year, calculating tax individually. Combined taxation involves including the year-end bonus into the total comprehensive income for the year.

For most people, if their salary income exceeds their year-end bonus income, choosing separate taxation may result in a lower tax rate. Taxpayers can compare both methods during the process and choose the one that results in more refunds or less additional tax.

The tax authorities remind taxpayers that when handling the individual income tax settlement, they must ensure that the information provided is truthful, accurate, and complete. Do not trust deceptive “tax refund secrets” with fraudulent inducements, and strengthen personal information protection. For matters related to tax payments or refunds, you can call the 12366 tax service hotline or consult your local tax bureau. (Reporter Yin Shangyang)

(Shijiazhuang News Network)

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