If it is recognized as an individual, is the tax preferential policy of the threshold applicable?
If it is recognized as an enterprise, do you enjoy preferential tax policies for small and meager profit enterprises?
The answer is that individual industrial and commercial households, sole proprietorships and partnerships do not need to pay corporate income tax, but they need to pay personal income tax.
According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Printing and Distributing (Caishui [2000] No.91):
Article 2 The sole proprietorship enterprises and partnership enterprises mentioned in these Regulations.
(1) A sole proprietorship enterprise or partnership enterprise registered and established in accordance with the Law of People's Republic of China (PRC) on Sole proprietorship enterprises and the Law of People's Republic of China (PRC) on Partnership enterprises;
(two) a sole proprietorship and partnership private enterprise registered and established in accordance with the Provisional Regulations of People's Republic of China (PRC) Municipality on Private Enterprises;
(3) A partnership law firm registered and established in accordance with the Lawyers Law of People's Republic of China (PRC);
(4) Other institutions or organizations with unlimited liability and unlimited joint and several liability established with the approval of relevant government departments according to law.
Therefore, from the above provisions, we can know the answer!