1. Tax obligations of self-employed individuals
After obtaining a business license, individual industrial and commercial households must handle tax registration in accordance with the law. Self-employed individuals should correctly establish account books and perform accounting accurately in accordance with the regulations of the tax department. For self-employed individuals with sound accounting certificates and accurate accounting, the tax department will conduct audits and levies them; for self-employed individuals with small production and operation scale and no ability to establish accounts, the tax department will implement regular fixed-rate levies; for self-employed individuals with certain circumstances, the tax department will have to have the right to determine the amount of tax payable and implement assessment and collection.
So how do self-employed individuals pay taxes? Let’s take a look at the self-employed tax standards.
2. Taxation standards for self-employed individuals
1. Those who sell goods should pay 3 value-added tax, and those who provide services should pay 5 business tax.
2. At the same time, urban construction tax and education surcharge shall be paid according to the sum of value-added tax and business tax paid.
3. There is also a personal income tax of about 2.
4. If your monthly income is less than 5,000 yuan, you are exempt from value-added tax or business tax, as well as urban construction tax and education surcharge.
3. Regular fixed-amount tax payment for self-employed individuals
The tax department generally implements a regular fixed-amount tax payment method for self-employed individuals, that is, it will give you a monthly tax payment based on region, location, area, equipment, etc. The amount of tax paid. If the amount of the invoice issued is less than the fixed amount, the tax shall be paid according to the fixed amount; if the amount of the invoice issued exceeds the fixed amount, the excess tax shall be paid according to the regulations. If the threshold for VAT is not reached (monthly sales of 5,000-20,000 yuan, which varies by province), VAT, urban construction tax and education surcharge can be exempted.
The "Tax Calculation Measures" stipulate the deduction standards for some major items as follows:
(1) The expense deduction standards for individual industrial and commercial owners and the salary deduction standards for employees are: Provincial local tax bureaus determine this, but self-employed owners are not allowed to make deductions from their wages.
(2) Various expenses incurred by self-employed individuals from the date of application for a business license to the date of commencement of production and operation, except for expenses for acquiring fixed assets, intangible assets and exchange gains and losses included in the value of the assets. , In addition to interest expenses, it can be used as start-up expenses and be amortized in installments over a period of no less than 5 years from the date of commencement of production and operation.
(3) The portion of borrowing interest expenses incurred during the production and operation period that does not exceed the amount calculated in accordance with the loan interest rate for the same type and the same period stipulated by the People's Bank of China can be deducted.
(4) Expenditures on the purchase of low-value consumables should, in principle, be amortized in one go; those with a larger one-time purchase value should be amortized in installments (the value standards and amortization periods are determined by provincial and local governments) determined by the tax bureau). Expenditures incurred by self-employed individuals to purchase tax-controlled cash registers should be deducted in installments within two to five years. The specific period is determined by the local tax bureaus of each province, autonomous region, and municipality directly under the Central Government.
(5) Various insurance premiums related to production and operation, such as property insurance, transportation insurance, pension insurance, medical insurance and other insurance premiums for employees, shall be calculated and deducted in accordance with relevant state regulations.
(6) Repair expenses related to production and operation can be deducted according to the facts; if the repair expenses are uneven or the amount is relatively large, they should be deducted in installments (the deduction standard and period shall be determined by the provincial local tax bureau).
(7) Various taxes paid by self-employed individuals in accordance with regulations, including business tax, consumption tax, urban maintenance and construction tax, resource tax, land use tax, land value-added tax, real estate tax, vehicle and vessel use tax, stamp tax, cultivated land Occupancy tax and education surcharges are allowed to be deducted in accordance with regulations.
(8) Industrial and commercial management fees, self-employed workers association membership fees and stall fees paid in accordance with regulations can be deducted according to the actual situation; how to deduct other fees paid shall be determined by the provincial local taxation bureau.
(9) Expenses incurred when leasing fixed assets in production and operation, if they are operating leases (i.e. temporary leases, the fixed assets will still be returned to the lessor after the lease expires), they shall be The lease fee can be deducted according to the actual situation; if it is a financial lease (that is, the lease contract stipulates that upon the expiration of the lease term, the fixed asset will belong to the lessee after the lessee pays the last rent), the lease fee should be included in the value of the fixed asset , cannot be deducted directly.
(10) Development expenses incurred in the research and development of new products, new technologies, and new processes, as well as the purchase of test instruments and experiments with a single value of less than 50,000 yuan for the research and development of new products and new processes. The purchase cost of sexual equipment is 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 costs meet the fixed asset standards, are managed as fixed assets and cannot be directly deducted.
(11) Inventory losses and net damage losses of fixed assets and current assets that occur in the process of production and operation can be deducted in the current period after the individual industrial and commercial households provide inventory information and are reviewed by the competent tax authorities.
(12) For current accounts settled in foreign currencies during the production and operation process, the difference in RMB equivalent due to changes in exchange rates shall be included in the income of the current period or deducted in the current period as exchange gains or losses.
(13) For irrecoverable accounts related to production and operations (referring to accounts receivable that cannot be recovered after the debtor’s bankruptcy property or inheritance has been paid off due to bankruptcy or death; or due to Accounts receivable (accounts receivable that the debtor has not fulfilled its debt repayment obligations for more than 3 years) must provide valid certificates and can be deducted after being reviewed by the competent tax authorities.
(14) For donations made through social groups and state agencies in my country to education and other social welfare undertakings, as well as areas hit by severe natural disasters and poverty-stricken areas, the donation amount does not exceed 30% of their taxable income. Part of the amount shall be deducted based on the actual amount. Donations made directly to the beneficiary are not deductible.
(15) For business entertainment expenses related to production and operation, legal certificates must be provided, and after review by the competent tax authorities, the total income shall be 5. Deductions will be made within the actual amount.
(16) The expenses incurred by individual industrial and commercial households in the process of production and business operations that are mixed with their family life shall be apportioned by the competent tax authorities to determine the apportionment ratio, and the expenses incurred in the process of production and business operations shall be calculated and determined accordingly; approved deduct.
(17) For annual operating losses, after review by the competent tax authorities, they can be made up with the operating income of the next year; if the operating income of the next year is insufficient to make up for it, they can be made up year by year, but at most More than 5 years.
(18) Depreciation of fixed assets. According to regulations, houses, buildings, machines, equipment, transportation tools and other equipment and tools related to production and operation that are used by self-employed individuals for more than one year and have a unit value of more than 1,000 yuan are fixed assets. According to regulations, self-employed houses and buildings, in-use machinery and equipment, instruments and meters, various tools and equipment, equipment that is temporarily out of service and repaired and out of service as well as fixed assets rented out by operating leases and rented out by financial leases Depreciation is allowed; however, depreciation is not allowed for unused and unused fixed assets other than houses and buildings, fixed assets rented under operating leases, and fixed assets that have been fully depreciated and continue to be used. Before accruing depreciation, the residual value of a fixed asset should be estimated and deducted from the original value of the fixed asset. The residual value is determined at 5 times the original price of the fixed asset. The depreciation of fixed assets of self-employed individuals shall be carried out after being reviewed by the competent tax authorities within no less than the following years: 20 years for houses and buildings; 10 years for ships, machines, machinery and other equipment; electronic equipment, transportation tools ( (excluding ships) and appliances, tools, furniture, etc. related to production and operation for 5 years. If the depreciation life needs to be shortened due to special reasons, an application can be submitted to the provincial local tax bureau for approval. Fixed asset depreciation adopts straight-line method and workload method.
(19) Inventories reserved by self-employed individuals for sale or consumption during the production and operation process, including raw materials, auxiliary materials, fuel, low-value consumables, packaging, products in progress, purchased goods, Self-made semi-finished products, finished products, etc. should be valued according to actual costs. In principle, the weighted average method is used for accounting for receipt or delivery of inventory.
(20) Intangible assets used in the production and operation process, including patent rights, trademark rights, non-patented technologies, goodwill, copyrights, site use rights, etc., shall be effectively used from the date of commencement of use. The amount will be deducted in equal installments during the period.