1 minute understanding: Why do I need to handle the annual settlement of comprehensive income tax

According to the policy provisions, from March 1 to June 30, 2024, taxpayers need to handle the final settlement of 2023 individual income tax comprehensive income (hereinafter referred to as the "annual settlement"). Then why do you need to handle the annual tax settlement? Let's take a look

First, the legitimate rights and interests of taxpayers can be better protected through annual settlement. For example, some deduction items, such as the serious illness medical expenditure in the special additional deduction, can only know the exact amount of annual expenditure at the end of the year, and need to supplement the deduction in the annual settlement.

Second, the annual personal income tax payable by the taxpayer can be calculated more accurately through the annual settlement. Generally speaking, for taxpayers who have obtained a variety of comprehensive income, no matter what kind of withholding and withholding method is adopted, it is impossible to make the tax amount already paid in advance and the annual tax amount payable completely consistent, at this time there will be a "difference" between the two, which needs to be adjusted through the annual settlement.

Source: State Administration of Taxation