Taxable income is the total income of individual industrial and commercial households in each tax year, after deducting costs, expenses and losses. Cost refers to all kinds of production expenses, sales expenses, management expenses and financial expenses incurred by taxpayers in their production and operation; Loss refers to all kinds of non-operating expenses incurred by taxpayers in the process of production and operation.
The income from the production and operation of individual industrial and commercial households is subject to a five-level excess progressive tax rate of 5%-35%. (See Table 2 for tax rates)
Tax rate table 2? (Applicable to income from production and operation of individual industrial and commercial households and income from contracted operation and lease operation of enterprises and institutions)
Quick deduction of tax rate percentage for tax-included steps and tax-excluded steps in series
1 Not more than 5,000 yuan, not more than 4,750 yuan, 50
2 The part exceeding 5,000 yuan 10000 yuan, and the part exceeding 4,750 yuan 10 250 yuan.
3 The part exceeding 10000 yuan to 30000 yuan and the part exceeding 9250 yuan to 25250 yuan is 20 1250.
The part exceeding 30,000 yuan to 50,000 yuan and the part exceeding 25,250 yuan to 39,250 yuan.
5 The part exceeding 50,000 yuan and the part exceeding 39,250 yuan 35 6750
Note: 1. The tax-included and tax-excluded scales listed in the table are all income after deducting related expenses (costs and losses) according to the tax law.
2. Taxes are applicable to the income from production and operation of individual industrial and commercial households and the income from contracted operation and lease operation of taxpayers; The tax-free grade is applicable to the income from contracted operation and lease operation that others (units) pay taxes.
Calculation formula of tax payable:
Taxable income = total annual production and operation income-costs, expenses and losses
Taxable amount = taxable income × applicable tax rate-quick deduction
Example 1: Qian, an individual industrial and commercial household, earned 500,000 yuan this year and lost 400,000 yuan in cost. The calculation method of personal income tax payable is as follows:
Taxable income = 50-40 = 10 (ten thousand yuan)
Taxable amount = 100000× 35%-6750 = 28250 (yuan)
Example 2: A self-employed person paid taxes in advance in June 136 yuan, and the accumulated taxable income in February was 2200 yuan. The tax payable by self-employed persons in February is calculated as follows:
Annual taxable income =2200× 12/2= 13200 (yuan)
Look-up table shows that the applicable tax rate is 20%.
Annual tax payable =13200× 20%-1250 =1390 (yuan)
Tax payable in February =1390× 2/12-136 = 95.67 (yuan)
For business households whose account books are not perfect and the taxable income cannot be correctly calculated, the approved taxable income shall be based on the applicable tax rate or the industry levy rate (industry levy rate: industrial production (production system) 1%, industrial processing and repair 2%, motor vehicle maintenance 3%, commodity sales 0.7%, diet 2%, beauty salon 5%, entertainment 5%, transportation 2%).
Measures for the Administration of Individual Income Tax of Individual Industrial and Commercial Households in State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) (for Trial Implementation)
(Guo Shui Fa [1997] No.43; 1March 26, 997)
In order to implement the spirit of "Notice of the State Council Forwarding State Taxation Administration of The People's Republic of China on Strengthening Tax Collection and Management of Individual and Private Economy and Strengthening Audit Collection" (Guo Fa [1997] 12No.) and strengthen the management of individual income tax collection of individual industrial and commercial households, our bureau has formulated the Measures for the Administration of Individual Income Tax Collection of Individual Industrial and Commercial Households (for Trial Implementation), please implement it carefully.
Article 1 These Measures are formulated in accordance with the provisions of the relevant tax laws and regulations of the state for the purpose of doing a good job in the collection of accounts by individual industrial and commercial households (hereinafter referred to as self-employed) and strengthening the collection and management of individual income tax.
Article 2. All self-employed individuals who are levied by auditing accounts shall calculate, declare and pay personal income tax in accordance with the provisions of these Measures.
Article 3 The total income of self-employed individuals in each tax year, after deducting costs, expenses and losses, shall be taxable income, and the personal income tax payable shall be calculated accordingly. Its calculation formula is: taxable income = total income-personal income tax payable for costs, expenses and losses = taxable income × applicable tax rate.
Article 4 The total income of the self-employed refers to the income obtained by the self-employed in production and business operations and activities related to production and business operations, including commodity (product) sales income, business income, labor income, project price income, property rental or transfer income, interest income, other business income and non-agricultural income.
Article 5 The income of self-employed individuals shall be determined on the accrual basis.
Article 6 Costs and expenses refer to indirect expenses, sales expenses, management expenses and financial expenses included in the direct expenses allocation incurred by self-employed individuals in production and operation; Loss refers to all kinds of industrial and agricultural expenditures incurred by self-employed individuals in the process of production and operation.
Article 7 Indirect expenses included in direct expenditure costs refer to direct materials such as raw materials, auxiliary materials, spare parts, outsourced semi-finished products, fuel, power and packaging. Actual consumption of self-employed individuals in the production and operation process, as well as commodity purchase fees, transportation fees, handling fees, packaging fees, depreciation fees, repair fees, utilities, travel expenses, rental fees (excluding financial rental fees), low-value consumables, etc. Happened and paid to the production and operation.
Article 8 Sales expenses refer to various expenses incurred in the process of selling products, self-made semi-finished products and providing labor services by self-employed, including transportation expenses, loading and unloading expenses, packaging expenses, commissions, advertising expenses, exhibition expenses, sales service fees and other sales expenses.
Article 9 Management expenses refer to various expenses incurred by self-employed individuals to manage and organize production and business activities, including labor insurance, consulting fees, legal fees, audit fees, land use fees, amortization of low-value consumables, amortization of intangible assets, amortization of start-up expenses, unrecoverable accounts (losses), business entertainment expenses, paid taxes and other management expenses.
Article 10 Financial expenses refer to various expenses incurred by self-employed individuals to raise funds for production and operation, including net interest expenses, net exchange losses, handling fees of financial institutions and other financial expenses in fund-raising.
Article 11 Non-operating expenses of self-employed individuals include: net loss of fixed assets caused by inventory loss, scrapping, damage and sale, loss caused by natural disasters or accidents, public welfare disaster relief donations, compensation, liquidated damages, etc.
Article 12 The deduction items and standards of the above-mentioned direct expenses, indirect expenses, sales expenses, management expenses, financial expenses and non-industrial and agricultural expenditures shall be determined in accordance with tax laws and regulations and the provisions of these Measures.
Article 13 The deduction standards for expenses of self-employed owners and wages of employees shall be determined by the local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government according to local actual conditions and reported to State Taxation Administration of The People's Republic of China for the record. The wages of individual owners shall not be deducted.
Article 14 The expenses incurred by self-employed individuals in accordance with the provisions of these Measures from the date of applying for business license to the date of starting production and operation, except the expenses for obtaining fixed assets and intangible assets, exchange gains and losses and interest expenses that should be included in the value of assets, can be used as start-up expenses, which can be deducted in equal installments within a period of not less than five years from the date of starting production and operation.
Article 15 If the loan interest expenses incurred by self-employed individuals in the process of production and operation do not exceed the amount calculated according to the loan interest rate of the same type and the same term stipulated by the People's Bank of China, deduction is allowed.
Article 16 The expenses of purchasing low-value consumables by self-employed households shall be amortized in principle, but if the one-time purchase amount is large, it shall be amortized in installments. The value standard and term of amortization by installments shall be determined by the local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government.
Article 17 The expenses for purchasing tax-controlled cash registers by self-employed individuals shall be deducted by stages within 2 to 5 years. The specific time limit shall be determined by the local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government.
Article 18 Insurance expenses incurred by self-employed individuals related to production and operation, such as property insurance, transportation insurance, employee pension, medical care, etc., shall be deducted according to relevant national standards.
Nineteenth self-employed repair costs related to production and operation can be deducted according to the facts. If the repair cost is unbalanced or the amount is relatively large, it shall be deducted by stages. The standard and time limit for installment deduction shall be determined by the local tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government.
Article 20 Consumption tax, business tax, urban maintenance and construction tax, resource tax, land use tax, land value-added tax, property tax, vehicle and vessel use tax, stamp duty, farmland occupation tax and education surcharge paid by self-employed individuals are allowed to be deducted.
Twenty-first self-employed in accordance with the provisions of the industrial and commercial management fees, individual workers association membership fees, booth fees, according to the actual number of deduction. The deduction items and standards of other expenses shall be determined by the local taxation bureaus of all provinces, autonomous regions and municipalities directly under the Central Government according to local actual conditions.
Article 22 The expenses incurred by self-employed individuals in renting fixed assets in the process of production and operation shall be handled in accordance with the following provisions:
(1) Lease expenses incurred in leasing fixed assets by means of financing lease (that is, the lessor and the lessee agree in advance that the fixed assets will be owned by the lessee after the lessee pays the last rent) shall be included in the value of fixed assets and shall not be directly deducted.
(2) The rental fee for renting fixed assets by operating lease (that is, temporarily renting fixed assets due to production and operation needs and returning them to the lessor after the lease expires) can be deducted according to the facts.
Twenty-third self-employed research and development of new products, new technologies, new processes, as well as research and development of new products, new technologies and the purchase of a single test instrument and experimental device with a value of less than 50 thousand yuan, are allowed to be deducted; Test instruments and experimental devices with a single value of more than 50,000 yuan, as well as other equipment whose purchase cost reaches the standard of fixed assets, shall be managed as fixed assets and shall not be deducted in the current period.
Twenty-fourth self-employed in the process of production and operation of fixed assets and current assets inventory loss and damage to the net loss, inventory loss information provided by the self-employed, after the audit of the competent tax authorities, can be deducted in the current period.
Article 25 In the course of production and operation, when the current account settled in foreign currency changes, the difference converted into RMB due to exchange rate changes shall be regarded as exchange gains and losses, included in the current income or deducted in the current period.
Article 26 The interest expenses incurred by self-employed individuals for the purchase and construction of fixed assets before they are delivered for use shall be included in the value of the purchased assets and shall not be deducted from the expenses.
Article 27 Irrecoverable accounts receivable related to the production and operation of self-employed households (including accounts receivable that cannot be recovered after the debtor's bankruptcy or death, or accounts receivable that cannot be recovered after the debtor fails to perform the debt repayment obligations for more than three years) shall be deducted according to the actual amount after being audited by the competent tax authorities. The above-mentioned deducted funds will be recovered in future years and directly treated as income.
Article 28 The annual operating losses of self-employed individuals are allowed to be covered by the operating income of the next year after being reported to the competent tax authorities for examination and approval. If the following year is insufficient, it is allowed to make up for it year by year, but the longest period shall not exceed five years.
Twenty-ninth business entertainment expenses related to production and operation of self-employed households shall be deducted from their total income within 5‰ after they provide legal lease vouchers or documents and are audited by the competent tax authorities.
Article 30 If a self-employed person donates his income to education and other public welfare undertakings through social organizations and state organs in China, or to areas suffering from serious natural disasters and poverty-stricken areas, the portion of his donation that does not exceed 30% of his taxable income may be deducted. The taxpayer's direct donation to the beneficiary shall not be deducted.
Article 31 The expenses incurred by self-employed individuals in the process of production and operation mixed with family life shall be approved by the competent tax authorities, and the expenses incurred in the process of production and operation shall be deducted.
Article 32 The following expenses of individual operators shall not be deducted:
(1) Capital expenditure, including expenditure on the purchase and construction of fixed assets, intangible assets and other assets, and expenditure on foreign investment;
(2) Confiscated property and fines paid;
(3) Personal income tax paid, adjustment tax on investment direction of fixed assets, and late fees, fines and penalties of various taxes;
(4) various sponsorship fees;
(5) Compensation for natural disasters or accidents;
6. Dividends distributed to investors;
(seven) for personal family expenses;
(eight) other expenses unrelated to production and operation;
(nine) other expenses that shall not be deducted according to the provisions of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC).
Article 33 Houses, buildings, machinery and equipment, means of transport and other equipment and tools related to production and operation with a service life of more than one year and a unit value of more than 65,438+0,000 yuan are fixed assets.
Thirty-fourth fixed assets are valued in the following ways:
(a) the purchase price, packaging fees, transportation fees and installation fees paid according to the actual purchase;
(two) self-built, according to the actual cost of all expenses incurred in the construction process;
(3) The investment in kind shall be assessed, confirmed or priced according to the contract and agreement;
(4) If the original fixed assets are rebuilt or expanded, the price shall be calculated according to the original book price minus the incomings of the renovation and expansion project and the increased expenses of the renovation and expansion;
(five) inventory surplus, according to the revaluation of the full value of similar fixed assets;
(six) financial leasing, the lease fee determined according to the lease agreement or contract plus transportation fee, insurance fee, installation and debugging fee, etc. ...
Article 35 The following fixed assets are allowed to depreciate: houses and buildings; Mechanical equipment and instruments in use; Various tools and instruments; Seasonal outage and repair of disabled equipment, as well as fixed assets leased out by way of operation and leased in by way of financial lease.
The following fixed assets are not depreciated: unused and unnecessary fixed assets other than houses and buildings; Fixed assets leased by way of operation; Fixed assets that have been fully depreciated and continue to be used.
Article 36 Before calculating the depreciation of fixed assets, the residual value shall be estimated and deducted from the original price of fixed assets. The residual value is determined by 5% of the original price of fixed assets.
Thirty-seventh individual operators in accordance with the provisions of the depreciation of fixed assets, allowed to deduct. The depreciation period of fixed assets shall not be shorter than the following specified period, which can be implemented after being audited by the competent tax authorities according to different situations:
(a) houses and buildings, for twenty years;
(two) ships, machinery, machinery and other production equipment, ten years;
(3) Electronic equipment and vehicles other than ships, as well as household appliances, tools, furniture, etc. Five years. If it is necessary to shorten the depreciation period of fixed assets due to special reasons, such as machinery and equipment that are strongly corroded by acid and alkali, houses and buildings that are in a state of vibration or trembling for a long time, and rapid technological changes, the self-employed will apply and report to the provincial tax authorities for examination and approval before implementation.
Article 38 The depreciation of fixed assets shall be calculated and extracted by the average life method and the workload method. The formula for calculating the depreciation of fixed assets according to the average life method is as follows:
Annual depreciation rate of fixed assets = 1-5% (residual value rate)/depreciation period × 100%.
Monthly depreciation rate = annual depreciation rate12
Monthly depreciation amount = original price of fixed assets × monthly depreciation rate
The formula for calculating depreciation of fixed assets by workload method is as follows:
Unit mileage (per working hour) depreciation = original price-residual value/total mileage (total working hours)
Article 39 The materials reserved by self-employed individuals for sale or consumption in the process of production and operation are inventories, including various raw materials, auxiliary materials, fuels, low-value consumables, packaging materials, products in process, purchased goods, self-made semi-finished products and finished products. Inventory should be priced at actual cost. In principle, the weighted average method is adopted for the receipt and delivery accounting of inventory.
Article 40 Assets that are used by self-employed individuals for a long time in the process of production and operation but have no physical form are intangible assets, including patent rights, non-patented technologies, trademark rights, goodwill, copyright, site use rights, etc. The valuation of intangible assets should be based on the actual cost obtained. Specifically:
(1) The original price of intangible assets as investment is the reasonable price agreed in the agreement and contract;
(2) The original price of the intangible assets purchased is the price actually paid;
(3) The original price of donated intangible assets shall be determined according to the attached documents or with reference to the market price of similar intangible assets; The evaluation of non-patented technology and goodwill shall be confirmed by the statutory evaluation agency.
Article 41 Intangible assets shall be amortized in installments within the effective use period from the date of use. As an investor or transferee of intangible assets, if the service life is stipulated in laws, contracts and agreements, it can be deducted by stages according to the service life; For intangible assets that have no specified service life or are developed by themselves, the deduction period shall not be less than ten years.
Forty-second approach by People's Republic of China (PRC) State Taxation Administration of The People's Republic of China is responsible for the interpretation of. The local taxation bureaus of all provinces, autonomous regions and municipalities directly under the Central Government may, in accordance with the principles stipulated in these Measures and in light of local conditions, formulate specific implementation measures.
Article 43 These Measures shall be implemented as of 1997 65438+ 10/day.