How do individual taxpayers handle tax refunds? Save this article!
Almost 10 days from now can you start your annual individual income tax return. The settlement starts from 1 March until 30 June 2024, and during this period, individual taxpayers can have the YR2023 individual income tax consolidated income annual return.
The State Administration of Taxation (SAT) has recently issued an Announcement on Matters Concerning the Consolidated Filing of Individual Income Tax Returns on Comprehensive Income 2023, clarifying the relevant matters to be handled.
How do individual taxpayers handle tax refunds or makeups? Let us review it together.
→Tax Refund
Taxpayers applying for tax remittance refunds shall provide their eligible bank accounts opened in China. After the tax authorities have examined the application in accordance with the regulations, the tax refund will be processed per the relevant treasury management provisions. If a taxpayer fails to provide his/her valid bank account, or if the information provided is incorrect, the tax authorities will notify the taxpayer to make corrections, and the taxpayer will handle the tax refund following the law after making corrections as required.
For easy arrangement, taxpayers whose annual income from comprehensive income in 2023 does not exceed 60,000 yuan and who have prepaid their individual income tax can choose to use the simple declaration function provided by the individual tax APP or website to handle the tax refund conveniently.
Taxpayers applying for 2023 remittance tax refund and other tax refunds, if there are taxpayers who should handle the remittance tax refund for 2022 and previous years but have not done so, or have been notified by the tax authorities that there are doubts in the remittance declarations for 2022 and previous years but have not corrected them or clarified the situation, they need to apply for a tax refund according to the law after they have handled the remittance tax refund, corrected the declarations, or clarified the relevant situation in the remittance declarations for 2022 and previous years.
→Tax Makeup
Taxpayers who handle the tax remittance makeup can pay through online banking, POS machines at the tax service hall, bank counters, and non-bank payment institutions. If the declaration is made by mail and the tax is replenished, the taxpayer is required to pay attention to the progress of the declaration and pay the tax promptly through the personal tax APP and website or the tax service hall of the competent tax authority.
For taxpayers who are required to makeup tax by remittance and do not declare the tax or do not compensate tax in full after the remittance period is over, upon discovery or random check, the tax authorities will order the taxpayers to make corrections within a certain period and serve the tax instruments to the taxpayers according to the law, and if the Confirmation of Electronic Delivery of Tax Instruments has been signed, the taxpayers will have the electronic instruments delivered through the individual tax APP and the website, etc.; and if the Confirmation of Electronic Delivery of Tax Instruments has not been signed, the tax instruments will be delivered in other ways. At the same time, the tax authorities will add late payment fees under the law and mark it in their tax record.
If a taxpayer fills in the declaration information incorrectly, resulting in over or underpayment of tax in remittance, and if the taxpayer takes the initiative or is reminded by the tax authorities to make corrections in a timely manner, the tax authorities may exempt from penalties in accordance with the principle of “first violation, non-Punishment”.
→More Information
For more details, you can refer to our previous article on our website:
https://www.serviceonnewgrounds.com/iit-filling-refund-compensate-2022/
If you have any questions, please feel free to contact us.
