Tax Collection for Individual Businesses

Tax Collection for Individual Businesses

Hotline: 86-755-82143422   Email: anitayao@citilinkia.com

1. The cost deduction standards for individual business owners and the wage deduction standards for employees are set by the tax bureaus of the provinces， autonomous regions and municipalities directly under the central government. The loan interest expenditure of the individual businesses during the period of production and operation can be deducted as long as they have legal proofs and are not higher than the amounts calculated according to the interest rates of the financial institutions for the loans of the same category and same period.

2.No personal income tax is collected from the individual businesses or the individuals who are exclusively engaged in planting， breeding， livestock farming and fishing and whose operational projects fall within the scope of the agricultural tax （including the agricultural specialty tax， the same below） and the livestock tax and have paid the agricultural and livestock taxes. If they do not fall within the scope of the agricultural and livestock taxes， they shall pay personal income tax for their incomes. If they operate all the above four occupations and the four occupations are separately accounted， the above principles shall prevail. If they fall within the scope of the personal income tax， they shall pay personal income tax by consolidating with the incomes from the production and operation in other occupations. If the incomes of the four occupations cannot be separately accounted， the personal income tax shall be levied on all their incomes.

3.For the profits of the individual businesses arising from joint operation with enterprises， the personal income tax shall be levied on the incomes from interests， dividends and bonuses.

4.If the individual businesses and the individuals engaged in production and operation receive taxable incomes unrelated to the activities of production and operation， they shall separately calculate and pay personal income tax as required.

Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.