For a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can deduct the accumulated deductions calculated from the beginning of the year when withholding the personal income tax on wages and salary income in advance. For example, if a recent graduate joins a job after graduating from university in July, the company can deduct the expenses for 7 months multiplied by RMB5,000 one month, which is RMB35,000 when calculating the personal income tax that should be deducted from the salary in July.

The new announcement clarified that when students receiving full-time academic education obtain labor remuneration for their internships, withholding agents can withhold and prepay individual income tax in accordance with the "State Administration of Taxation on the release of "Individual Income Tax Withholding Declaration Management Measures" (Trial) Announcement" (2018 No. 61) to calculate and withhold the withholding tax. For example, a school student received a labor remuneration of 3,000 yuan after his internship in Company A in July. According to the new policy, his withholding and prepayment for the current period in July is: withholding and prepayment for the current period = (5000-5000) ×withholding rate-quick calculation deductions-cumulative tax deductions-cumulative withholding and prepaid taxes = 0.