2025-07-09Brief Introduction on Finance and Taxation Practice of Individual Business in China
(1) |
The registered capital is over RMB200,000; |
(2) |
The monthly sales revenue is over RMB40,000 for VAT taxpayers who engage in taxable services; The monthly sales revenue is over RMB60,000 for VAT taxpayers who engage in production; The monthly sales revenue is over RMB80,000 for VAT taxpayers who engage in wholesale of retail of goods. |
(3) |
Other circumstances determined by the provincial tax authorities that double entry accounts shall be applied. |
(1) |
From 1 March 2020 to 31 December 2021, the tax rate for taxable income of individual business will be reduced from 3% to 1%. |
(2) |
From 1 April 2021 to 31 December 2022, VAT can be exempted for individual business whose monthly taxable income is no more than RMB150,000(quarterly taxable income is no more than RMB450,000). |
(1) |
Individual income tax; |
(2) |
Overdue fine of tax; |
(3) |
Losses of fine and confiscated property; |
(4) |
Donations that do not comply with the deductible rules; |
(5) |
Sponsorship expenses; |
(6) |
Expenses of individuals and families. For expenses that is difficult to distinguish operation costs from personal or family use are allowed to be deducted at 40% before tax; |
(7) |
Other expenses that is irrelated to the operation; |
(8) |
Expenses that not allowed to be deducted as stipulated by the State Administration of Taxation. |