Core Viewpoint - The article discusses the differences between "wage income" and "service income," emphasizing their definitions, employment relationships, and personal income tax calculation methods [7][11][12]. Group 1: Definitions - Wage income refers to the compensation received by individuals due to employment or engagement, including salaries, bonuses, and other related earnings [8]. - Service income is defined as the earnings obtained by individuals from providing various services, such as design, consulting, and performance [9]. Group 2: Employment Relationship - Wage income is associated with a formal employment relationship, where individuals are employed by organizations and receive compensation accordingly [11]. - Service income does not involve an employment relationship, as individuals independently provide services and receive payment for their work [11][12]. Group 3: Tax Calculation Methods - Both wage income and service income are categorized as comprehensive income, subject to withholding and annual reconciliation for personal income tax [13]. - For wage income, the tax is calculated using a cumulative withholding method based on the total income minus allowable deductions [14][15]. - Service income can be taxed using either a general method or a cumulative withholding method, with specific deductions based on the income amount [16].

Group 1 - The article discusses the increase in personal income tax for employees, particularly in relation to bonuses and prizes received during company events [2][4][6] - It explains that cash and physical prizes awarded to employees during company events are considered "other income related to employment" and are subject to personal income tax [4][6] - The tax is withheld and paid by the employer, and the applicable tax rate for such income is 20% [8][10] Group 2 - For prizes awarded to individuals outside the company, such as invited guests or business partners, these are classified as "occasional income" and also subject to personal income tax, with the same 20% tax rate applied [8][10] - The article emphasizes the importance of understanding tax regulations related to bonuses and gifts, highlighting the need for employees to be aware of their tax obligations [11] - It provides guidance on how to determine the tax period for year-end bonuses, indicating that bonuses paid in December 2025 will be considered income for the 2025 tax year [16][17]