The Research On Tax Planning Scheme Of Individual Income Tax On Wages And Salaries In YK Co.,LTD Based On The View Of Sustainable Business

Compensation scheme plays a role in company's daily and long-range operation and development,as a withholding agent of individual income tax,company can increase efficiency of fund,cut down the human resource costs and improve motivation of staffs by planning scheme of individual income tax.With the prosperity of Chinese economy,the scale of employee's salaries and wages grows continually,planning scheme of individual income tax starts to capture attention from theoretical and practical area,and in the meantime,company also puts a high premium on this planning scheme.Fifth session of the standing Committee of the 13 th NPC had adopted the Decision on Amending <Individual Income Tax Law of the People's Republic of China> on August,31 th,2018,which implement a new individual income tax system combined comprehensive and classifiable methods.After the reform,income item,deduction item,tax range,taxation management will change a lot,and the transition policy will also be a challenge to the way of individual income tax planning scheme.This article makes empirical analysis of YK Co.,LTD,researches its compensation plan and finds five particular problems: 1.the compensation system is single,2.no planning scheme for compensation,3.housing provident fund deposit base is low.4.tax of annual bonus is high,5.lack of enjoying tax preferential policies.These problems above in YK Co.,LTD are general and typical when put into practice.Therefore,this article will adopt the problem-oriented method,re-plan the compensation scheme of YK Co.,LTD by using EXCEL and consider new policies of individual income laws simultaneously,which would propose solutions of problems,in order to reduce tax burden and increase personal disposable income.At the beginning of new laws,this article hopes to provide a reasonable view for the planning scheme of individual income tax.