How to avoid tax with a monthly salary of 20 thousand

The monthly income reaches 20,000. If you want to avoid tax reasonably, you need to understand the relevant provisions of China's tax law and make tax planning under the premise of legal compliance. Tax avoidance is not tax evasion, but reducing tax burden through legal means.

First of all, understand the provisions of the tax law

The premise of tax avoidance is to understand the tax law. China's individual income tax laws stipulate tax rates at different income levels, as well as various pre-tax deductions and preferential tax policies. Therefore, high-income earners should seriously study the tax law and understand their tax obligations and rights.

Second, rationally arrange the income structure.

By reasonably arranging the income structure, the overall tax burden can be reduced. For example, some income can be converted into capital income, such as investment income and rental income. And these incomes may be subject to lower tax rates. At the same time, reasonable use of various pre-tax deductions stipulated in the individual income tax law, such as children's education, housing loan interest, etc. , you can also reduce the tax payable.

Third, choose the appropriate tax planning methods.

According to the individual's actual situation, choosing the appropriate tax planning method is also the key to tax avoidance. For example, you can consider increasing the pre-tax deduction by purchasing commercial health insurance and participating in enterprise annuity plans, so as to reduce the tax payable. In addition, the rational use of tax treaties and preferential tax policies is also an effective way to reduce the tax burden.

Four, abide by the provisions of the tax law, to avoid illegal acts.

Tax avoidance needs to be carried out under the premise of legal compliance, and any tax evasion, tax evasion and tax evasion are illegal. High-income earners should consciously abide by the provisions of the tax law, and must not make false declarations, conceal income and other illegal acts, so as not to bear legal responsibility.

To sum up:

High-income earners with a monthly income of 20,000 need to understand the provisions of the tax law, rationally arrange their income structure, choose appropriate tax planning methods, abide by the provisions of the tax law, and avoid illegal acts. On the premise of legal compliance, through reasonable tax planning, reduce the tax burden and realize the steady growth of wealth.

Legal basis:

Individual Income Tax Law of the People's Republic of China

Article 6 provides that:

Calculation of taxable income:

(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.

individual income tax law of the people's republic of china rules for its implementation

Article 25 provides that:

According to state regulations, the basic old-age insurance premium, basic medical insurance premium, unemployment insurance premium and housing accumulation fund paid by units and individuals are deducted from the taxable income of taxpayers.