Legal analysis: the consulting fee income of small-scale VAT taxpayers is taxed at 3%, and the invoices issued by the other party cannot be deducted. According to the current value-added tax policy, small-scale VAT taxpayers who only engage in consulting business (excluding other production, retail, wholesale and repair) will not be converted into general taxpayers if their annual consulting income is less than 5 million, that is, if their income is less than 5 million, they can be taxed at 3% and converted into general taxpayers at 6%.
Legal basis: Article 3 of the Individual Income Tax Law of People's Republic of China (PRC): (1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached); (2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached); (3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.