In Year 2020, the state taxation department issued the Announcement on Improving and Adjusting the Individual Income Tax Withholding and Prepayment Methods for Some Taxpayers and the Announcement on Further Simplifying and Optimizing the Individual Income Tax Withholding and Prepayment Methods for Some Taxpayers, which made a series of adjustments and optimization to the individual income tax withholding and prepayment methods for some taxpayers. What specific provisions are included?

Q:	In the Notice on Improving the Adjustment of Individual Income Tax Withholding and Prepayment Methods for Some Taxpayers, what two main parts of the individual withholding and prepayment methods have been adjusted?
A:	Adjustment personnel are mainly the following two categories: For resident individuals who earn wages and salaries for the first time in a tax year; Students who are receiving full-time academic education receive income from labor compensation for internship.
Q:	How to adjust for resident individuals who earn wages and salaries for the first time in a tax year?
A:	When withholding and prepayment of individual income tax, the withholding agent can calculate the cumulative deduction according to 5,000 yuan/month multiplied by the number of months of the taxpayer's year up to this month. First-time entrants who do not make an election in the first month cannot adjust it in the second month and can only remit it.
Q:	How to adjust the personal tax withholding method for students receiving full-time academic education who receive labor compensation income from internship?
A:	Taxes may be calculated and withheld in accordance with the cumulative withholding method as stipulated in the Announcement of the State Administration of Taxation on the Issuance of the Measures for the Administration of Individual Income Tax Withholding Declarations (for Trial Implementation) (No. 61 of 2018).
Q:	When did the Notice on Improving the Adjustment of Individual Income Tax Withholding and Prepayment Methods for Certain Taxpayers come into effect?
A:	Effective from July 1, 2020.
Q:	Which individuals' income tax withholding and payment methods have been adjusted in the Notice on Further Simplification and Optimization of Individual Income Tax Withholding and Payment Methods for Some Taxpayers?
A:	The adjustment is for resident individuals who have withheld and paid individual income tax on wages and salaries from the same entity every month in the last full tax year and whose annual income from wages and salaries does not exceed RMB 60,000.
Q:	What adjustments will be made to the calculation of income tax from January 2021 onwards for resident individuals who have been withholding and paying individual income tax on wages and salaries from the same entity every month in the last full tax year and whose annual income from wages and salaries does not exceed RMB 60,000?
A:	The deduction in the accumulated deductible expenses is calculated directly in accordance with RMB 60,000 for the year starting from January. In other words, in the month when the taxpayer's accumulated income does not exceed RMB 60,000, no individual income tax withholding and prepayment will be made for the time being; in the month when his accumulated income exceeds RMB 60,000 and the subsequent months of the year, individual income tax withholding and prepayment will be made.