Income from production and operation of individual industrial and commercial households refers to: 1. Individual industrial and commercial households or individuals engaged in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries. 2. Income obtained by individuals who have obtained licenses from relevant government departments to engage in running schools, medical care, consulting and other paid service activities; 3. Income obtained by other individuals engaged in individual industrial and commercial production and operations; 4. The above-mentioned individual industrial and commercial households and individuals Various taxable income obtained related to production and operation.

The income from production and operation of individual industrial and commercial households shall be the taxable income based on the total income in each tax year, minus costs, expenses and losses. Costs and expenses refer to various production expenses, sales expenses, management expenses and financial expenses incurred by taxpayers in production and operation; losses refer to various non-operating expenses incurred by taxpayers in the process of production and operation.

The income from production and operation of individual industrial and commercial households is subject to a five-level excess progressive tax rate of 5-35. (See the second tax rate table)

The second tax rate table? (Applicable to the production and operating income of individual industrial and commercial households and the income from contracted operations and leasing operations of enterprises and institutions)

The series includes The tax bracket gap does not include the tax bracket tax rate quick calculation deduction number

1 5 0 that does not exceed 5,000 yuan and does not exceed 4,750 yuan

2 The portion that exceeds 5,000 yuan to 10,000 yuan exceeds 4,750 yuan The portion exceeding RMB 9,250 to RMB 9,250 10 250

3 The portion exceeding RMB 10,000 to RMB 30,000 The portion exceeding RMB 9,250 to RMB 25,250 20 1,250

4 The portion exceeding RMB 30,000 to RMB 50,000 The portion exceeding 25,250 yuan to 39,250 yuan 30 4,250

5 The portion exceeding 50,000 yuan The portion exceeding 39,250 yuan 35 6,750

Note: 1. The tax brackets listed in the table are the same as Excluding tax brackets, it is the income after deducting relevant expenses (costs, losses) in accordance with tax laws.

2. The tax-inclusive range applies to the production and operating income of individual industrial and commercial households and the income from contracting and leasing operations for which taxpayers bear the tax; the tax-exclusive range applies to income paid by others (units) Income from contracting operations and leasing operations where taxes are paid.

Tax payable calculation formula:

Taxable income = Total annual production and operating income - costs, expenses, losses

Tax payable = Tax payable Amount of income The calculation method of personal income tax is:

Taxable income = 50-40 = 10 (thousand yuan)

Taxable amount = 100000 × 35-6750 = 28250 (yuan) )

Example 2. A self-employed individual has prepaid tax of 136 yuan in January and has a cumulative taxable income of 2,200 yuan in February. The prepaid tax for the self-employed person in February is calculated as follows:

Annual taxable income = 2200 × 12/2 = 13200 (yuan)

Check the table and find out that the applicable tax rate is 20

Annual taxable amount = 13200 ×20-1250=1390 (yuan)

The amount of prepaid tax in February = 1390×2/12-136=95.67 (yuan)

The account book is not complete and cannot be calculated correctly Business households with taxable income shall be taxed according to the applicable tax rate based on the assessed taxable income or the turnover tax calculation method based on the industry levy rate (industry levy rate: industrial production (production system) 1, industrial processing and repair 2, machinery Motor vehicle maintenance 3, product sales 0.7, catering 2, beauty salon 5, entertainment 5, transportation 2, construction and installation 2, real estate 2.5, others 2.5).

Measures for the Calculation of Personal Income Tax for Individual Industrial and Commercial Households by the State Administration of Taxation (Trial)

(Guo Shui Fa [1997] No. 43; March 26, 1997)

In order to implement the spirit of the "Notice of the State Council on Approving and Transmitting the Opinions of the State Administration of Taxation on Strengthening the Tax Collection and Administration of the Individual and Private Economy and Strengthening the Audit and Collection Work" (Guofa [1997] No. 12), and strengthen the collection and management of personal income tax for individual industrial and commercial households, Our bureau has formulated the "Personal Income Tax Calculation Measures for Individual Industrial and Commercial Households (Trial)", please implement it conscientiously.

Article 1 To meet the needs of auditing and collecting taxes on individual industrial and commercial households (hereinafter referred to as self-employed) and to strengthen the collection and management of personal income tax, these Measures are formulated in accordance with the relevant national tax laws and regulations.

Article 2 All self-employed individuals who implement audit and collection shall calculate, declare and pay personal income tax in accordance with the provisions of these Measures.

Article 3 The balance of the total income of a self-employed individual in each tax year after deducting costs, expenses and losses is the taxable income, and the amount of personal income tax payable is calculated accordingly. The calculation formula is: Taxable income = Total income – Costs, expenses and losses Personal income tax payable = Taxable income × Applicable tax rate

Article 4 The total income of self-employed individuals refers to the Various incomes obtained from production and operation and activities related to production and operation, including commodity (product) sales income, operating income, labor service income, project price income, property rental or transfer income, interest income, other business income and industrial and agricultural income external income.

Article 5 All income of self-employed individuals shall be determined on the accrual basis.

Article 6 Costs and expenses refer to the distribution of various direct expenditures incurred by self-employed individuals in their production and operations, including indirect expenses, sales expenses, management expenses, and financial expenses; Various industrial and agricultural expenditures incurred in the course of business operations.

Article 7 The indirect expenses included in the allocation of direct expenses refer to the various raw materials, auxiliary materials, spare parts, outsourced semi-finished products, fuel, power, and packaging actually consumed by self-employed individuals in the production and operation process. Direct materials such as goods and goods purchase costs, transportation fees, loading and unloading fees, packaging fees, depreciation fees, repair fees, water and electricity fees, travel expenses, leasing fees (excluding financial leasing fees), low-value consumables, etc., as well as payment Wages paid to production and operation employees.

Article 8 Sales expenses refer to various expenses incurred by self-employed individuals in the process of selling products, self-made semi-finished products and providing labor services, including: transportation fees, loading and unloading fees, packaging fees, commissioned sales agency fees, advertising fees , exhibition fees, 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 premiums, consulting fees, litigation fees, audit fees, land use fees, low-cost Amortization of valuable consumables, amortization of intangible assets, amortization of start-up expenses, irrecoverable accounts (environmental loss), business entertainment expenses, taxes paid and other administrative 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, financial institution fees and other financial expenses in financing.

Article 11 The non-operating expenses of self-employed individuals include: net losses from inventory losses, scrapping, damage and sales of fixed assets, losses from natural disasters or accidents, public welfare relief donations, compensation, liquidated damages, etc. .

Article 12 The items and standards that are allowed to be deducted from the above-mentioned direct expenses, indirect expenses, sales expenses, management expenses, financial expenses, and non-industrial and agricultural expenses shall be determined in accordance with the provisions of tax laws, regulations and these Measures Sure.

Article 13 The expense deduction standards for self-employed owners and the salary deduction standards for employees shall be determined by the local taxation bureaus of each province, autonomous region, and municipality directly under the Central Government based on local actual conditions, and shall be reported to the State Administration of Taxation for filing. No deductions are allowed from the wages of self-employed business owners.

Article 14 The expenses incurred by self-employed individuals from the date of application for a business license to the date of commencement of production and operation that comply with the provisions of these Measures, except for expenses for acquiring fixed assets, intangible assets and assets that should be included in In addition to the value of exchange gains and losses and interest expenses, they can be used as start-up expenses and will be deducted in equal installments over a period of no less than five years from the date of commencement of production and operation.

Article 15 The portion of borrowing interest expenses incurred by self-employed individuals in the process of production and operation that does not exceed the amount calculated based on the loan interest rate for the same type and the same period stipulated by the People's Bank of China shall be deducted.

Article 16 In principle, the expenses incurred by self-employed individuals to purchase low-value consumables shall be amortized in one lump sum. However, if the one-time purchase value is relatively large, it shall be amortized in installments. The value standard and period of amortization are determined by the local tax bureaus of each province, autonomous region, and municipality directly under the Central Government.

Article 17 The expenses incurred by self-employed individuals to purchase tax-controlled cash registers should be deducted in installments within two to five years. The specific time limit is determined by the local tax bureau of each province, autonomous region, and municipality directly under the Central Government.

Article 18 The property insurance, transportation insurance, pension, medical and other insurance expenses incurred by self-employed individuals related to production and operation shall be calculated and deducted according to the standards prescribed by the relevant state.

Article 19 Repair expenses incurred by self-employed individuals related to production and operation can be deducted according to the actual situation. If the repair costs are uneven or the amount is relatively large, they should be deducted in installments. The installment deduction standard and period are determined by the local tax bureaus of each province, autonomous region, and municipality directly under the Central Government.

Article 20 The consumption tax, business 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, farmland occupation tax and education tax paid by self-employed individuals in accordance with regulations Additional deductions are allowed.

Article 21 The industrial and commercial management fees, self-employed workers association dues, and stall fees paid by self-employed individuals in accordance with regulations shall be deducted based on the actual amount incurred. For other fees paid, the deduction items and standards shall be determined by the local tax bureaus of each province, autonomous region, and municipality directly under the Central Government based on local actual conditions.

Article 22 The fees paid by self-employed individuals to rent fixed assets in the process of production and operation shall be handled in accordance with the following provisions:

(1) In the form of financial leasing (i.e. leasing The landlord and the lessee have agreed in advance that the fixed asset will be owned by the lessee after the lessee pays the last rent.) The lease fees incurred for leasing the fixed asset shall be included in the value of the fixed asset and shall not be directly deducted.

(2) The leasing fee for fixed assets rented in the form of operating lease (that is, fixed assets are temporarily rented due to production and operation needs, and the fixed assets shall be returned to the lessor after the lease period expires) can be calculated according to the actual situation. deduct.

Article 23 The development expenses incurred by self-employed individuals to research and develop new products, new technologies, and new processes, as well as the research and development of new products and new technologies and the purchase of a single testing instrument worth less than 50,000 yuan The purchase costs of experimental equipment and equipment are allowed to be deducted; testing instruments and experimental equipment with a single value of more than 50,000 yuan, and other equipment whose purchase costs meet the fixed asset standard are managed as fixed assets and shall not be deducted in the current period.

Article 24 The inventory losses and net damage losses of fixed assets and current assets incurred by self-employed individuals in the process of production and operation can be deducted in the current period after the individual individuals provide inventory information and are reviewed by the competent tax authorities. .

Article 25 When self-employed individuals increase or decrease their current accounts settled in foreign currencies in the course of production and operation, the difference in RMB equivalent due to changes in exchange rates shall be treated as exchange gains and losses and included in the income of the current period or Deducted in the current period.

Article 26 Interest expenditures incurred by self-employed individuals related to the acquisition of fixed assets before the assets are delivered for use shall be included in the value of the purchased and constructed assets and shall not be deducted as expenses.

Article 27 Uncollectible accounts related to production and operation incurred by self-employed individuals (including accounts receivable that cannot be recovered after the debtor’s bankruptcy or death has been paid off with his bankruptcy property or inheritance) , or accounts receivable that cannot be recovered because the person has overdue debt repayment obligations for more than three years), they should provide valid certificates and submit them to the competent tax authorities for review, and then deduct the actual amount incurred. The above-deducted accounts will be recovered in subsequent years and should be directly treated as income.

Article 28 The annual operating losses of self-employed individuals are allowed to be made up with the operating income of the next year after being reviewed by the competent tax authorities. If the losses are insufficient in the next year, they are allowed to be made up year by year, but in the end It must not exceed five years.

Article 29 Business entertainment expenses incurred by self-employed individuals related to production and operation shall be provided with legal rental certificates or documents. After being reviewed by the competent tax authorities, the business entertainment expenses incurred shall be deducted within 5‰ of the total income. .

Article 30: Self-employed individuals may donate their income through social groups and state agencies within China to education and other social welfare undertakings, as well as areas suffering from severe natural disasters and poverty-stricken areas, and the amount of the donation shall not exceed their due amount. The 30% part of the taxable income can be deducted according to the actual situation. Donations made directly by a taxpayer to a beneficiary are not deductible.

Article 31 The expenses incurred by self-employed individuals in the process of production and business operations that are mixed with family life shall be apportioned by the competent tax authorities to determine the apportionment ratio. The expenses incurred in the production and business operations shall be calculated and determined accordingly. deduct.

Article 32 The following expenditures of self-employed individuals shall not be deducted:

(1) Capital expenditures, including: expenditures for the purchase and construction of fixed assets, intangible assets and other assets, Expenditures on foreign investment;

(2) Confiscated property and fines paid;

(3) Personal income tax, fixed asset investment direction adjustment tax, and various taxes paid late payment fees, fines and fines;

(4) Various sponsorship expenditures;

(5) Compensation for natural disasters or accidental losses;

(6) Dividends distributed to investors;

(7) Expenditures for personal households;

(8) Other expenses not related to production and operations;

(9) Other expenses that are not allowed to be deducted according to the regulations of the State Administration of Taxation.

Article 33: Houses, buildings, machines, equipment, means of transportation and other production and operation-related items used by self-employed individuals in the process of production and operation for a period of more than one year and with a unit value of more than 1,000 yuan Equipment, tools, etc. are fixed assets.

Article 34 Fixed assets shall be valued according to the following methods:

(1) If purchased, they shall be valued according to the actual purchase price, packaging fees, transportation and installation fees, etc. ;

(2) For self-construction, the price shall be calculated based on all expenditures actually incurred during the construction process;

(3) For physical investment, the price shall be calculated according to the appraisal confirmation or the stipulations in the contract or agreement.

(4) If the reconstruction or expansion is carried out on the basis of the original fixed assets, the valuation shall be based on the original book price minus the price change income incurred during the reconstruction and expansion project plus the increased expenditure on the reconstruction and expansion;

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(5) If there is a surplus, it shall be valued according to the revalued full value of the same type of fixed assets;

(6) If it is financed and leased, it shall be calculated according to the lease fee plus transportation fee determined in the lease agreement or contract. , insurance premiums, installation and commissioning fees, etc. are priced.

Article 35 The following fixed assets are allowed to accrue depreciation: houses and buildings; machinery and equipment in use, instruments and meters; various tools and tools; equipment that is temporarily out of service or out of service for repairs, and Fixed assets leased out on an operating basis and leased out on a finance lease basis.

Depreciation is not accrued for the following fixed assets: unused and unused fixed assets other than houses and buildings; fixed assets rented in a business manner; fixed assets that have been fully depreciated and continue to be used.

Article 36 Before calculating depreciation of a fixed asset, the residual value shall be estimated and deducted from the original price of the fixed asset. The residual value is determined based on 5% of the original price of the fixed asset.

Article 37 The depreciation of fixed assets accrued by self-employed individuals in accordance with regulations is allowed to be deducted. The depreciation life of fixed assets shall not be shorter than the following prescribed years, and may be implemented after review by the competent tax authorities according to different circumstances:

(1) For houses and buildings, twenty years;

(2) Ships, machines, machinery and other production equipment, for ten years;

(3) Electronic equipment and means of transportation other than ships, as well as household appliances, tools, furniture, etc., for five years. If the depreciation life of fixed assets needs to be shortened due to special reasons, such as machines and equipment that are strongly corroded by acids, alkali, etc., simple or houses and buildings that are in a state of shaking or shaking for many years, as well as rapid technological updates and changes, etc., the application shall be submitted by self-employed individuals. , which will be implemented after being submitted to the provincial tax authorities for review and approval.

Article 38 The depreciation of fixed assets is calculated and extracted according to the average life method and the workload method. The formula for calculating depreciation of fixed assets based on the average life method is as follows:

Annual depreciation rate of fixed assets = 1-5 (residual value rate) / depreciation life × 100

Monthly depreciation rate = year Depreciation rate ÷ 12

Monthly depreciation amount = original price of fixed assets × monthly depreciation rate

The formula for calculating depreciation of fixed assets according to the workload method is as follows:

Unit mileage (Per working hour) Depreciation amount = Original price - Residual value/Total mileage (total working hours)

Article 39 The materials reserved by self-employed individuals for sale or consumption during the production and operation process are inventories. , including various raw materials, auxiliary materials, fuels, low-value consumables, packaging, in-process products, purchased goods, self-made semi-finished products, finished products, etc. Inventories should be valued at actual cost. In principle, the weighted average method is used for accounting of inventory received or issued.

Article 40 Assets that are used by self-employed businesses for a long time in the production and operation process but have no physical form are intangible assets, including patent rights, non-patented technologies, trademark rights, goodwill, copyrights, site use rights, etc. The valuation of intangible assets shall be based on the actual cost obtained. Specifically:

(1) For intangible assets as investments, the original price shall be the reasonable price stipulated in the agreement or contract;

(2) For purchased intangible assets, the original price shall be the actual price paid. is the original price;

(3) The original price of donated intangible assets shall be determined based on the attached documents or with reference to the market price of similar intangible assets; the valuation of non-patented technology and goodwill shall be confirmed after evaluation by a statutory appraisal agency.

Article 41 Intangible assets shall be deducted in equal installments within the effective use period from the date of commencement of use. Intangible assets that are invested or transferred and have a useful life specified in laws, contracts and agreements can be deducted in installments according to the useful life; for intangible assets that do not have a specified useful life or are self-developed, the deduction period shall not be less than ten years.

Article 42 The State Administration of Taxation is responsible for the interpretation of these Measures. The local tax bureaus of each province, autonomous region, and municipality directly under the Central Government may formulate specific implementation measures based on the principles stipulated in these Measures and in conjunction with local realities.

Article 43 These Measures shall be implemented from January 1, 1997.