According to the relevant regulations, individual industrial and commercial households in China need to apply for tax registration in accordance with the regulations, except for mobile rural vendors who have no fixed production and business premises. In China, the tax standard for individual industrial and commercial households is generally like this: individual industrial and commercial households selling goods pay 3% value-added tax, while those providing services pay 5% business tax. Income from production and operation of individual industrial and commercial households refers to:

1, income from the production and operation of individual industrial and commercial households engaged in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries;

2, individuals approved by the relevant government departments, obtain a license, engaged in school, medical care, consulting and other paid service activities;

3, other individuals engaged in individual industrial and commercial production and management income;

4. Taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.

Operating income shall be taxed at an excessive progressive rate of 5% to 35%.

For operating income, the taxable income is the balance after deducting costs, expenses and losses from the total income in each tax year.

If the audit collection is implemented, it shall be calculated according to the total income of each tax year after deducting costs, expenses and losses; If a fixed amount of tax is levied on a regular basis, it shall be calculated according to the annual taxable income declared by taxpayers themselves, or according to the annual taxable business amount declared by taxpayers themselves multiplied by the taxable income rate.

Individual industrial and commercial households shall report to the competent tax authorities where they actually operate.

It should be noted that the losses incurred by individual industrial and commercial households in the tax year are allowed to be carried forward to the following years, and made up with the income from production and operation in the following years, but the longest carrying-forward period shall not exceed five years.

legal ground

Measures for individual income tax calculation of individual industrial and commercial households

Article 2 Enterprises, branches established by enterprises in other places, places engaged in production and business operations, individual industrial and commercial households and institutions engaged in production and business operations shall go through tax registration in accordance with the Tax Administration Law, the Detailed Rules for Implementation and these Measures. Taxpayers other than those mentioned in the preceding paragraph, in addition to state organs, individuals and mobile rural vendors without fixed production and business premises, shall also go through tax registration in accordance with the Tax Administration Law, Detailed Rules for Implementation and these Measures. Withholding agents (except state organs) who have the obligation to withhold tax according to the provisions of tax laws and administrative regulations shall register tax withholding in accordance with the Tax Administration Law, the Detailed Rules for Implementation and these Measures.