In China, you need a business license to open a processing factory, regardless of its size. Failure to do so will be regarded as unlicensed operation and will be subject to administrative punishment. Moreover, as long as you have a business license, you have to pay taxes. It is illegal to open a small processing factory without obtaining a certificate and paying taxes.
Individual processing plants belong to individual industrial and commercial households. The specific analysis is as follows:
1. The scope of VAT taxation includes the sale (including import) of goods and the provision of processing, repair and replacement services;
2. Small-scale taxpayers, taxpayers engaged in the production of goods or providing taxable services, taxpayers whose main business is the production of goods or providing taxable services (that is, the annual sales of taxpayers' goods or services account for more than 50% of the annual taxable sales) and concurrently engage in the wholesale or retail of goods, and the annual taxable sales (hereinafter referred to as taxable sales) are below 500,000 yuan (inclusive).
Body households, that is, individual industrial and commercial households, are a specific type of registration and actually belong to unlimited companies. Self-employed individuals are approved to levy, and the threshold of national tax is determined in two cases: processing/repair and sales. In short, what is your main project? The processing/repair threshold is 3,000 yuan/month, and the sales threshold is 5,000 yuan/month.
Tax standards for individual industrial and commercial households:
1, 3% VAT is paid for goods sold and 5% business tax is paid for services provided;
2. At the same time, pay urban construction tax and education surcharge according to the sum of paid value-added tax and business tax;
3. There is also about 2% personal income tax;
4. If the monthly income is less than 5,000 yuan, it shall be exempted from value-added tax or business tax, and urban construction tax and education surcharge shall also be exempted;
5. The tax authorities generally implement a regular quota for individual industrial and commercial households, that is, give you a month's tax payable according to the area, lot, area and equipment.
The tax authorities that have approved the collection generally implement a regular quota method for individual industrial and commercial households, that is, according to the area, location, area, equipment and other quota collection. They will give you a month's tax payable.
If the invoiced amount is less than the quota, the tax shall be paid according to the quota; If the invoice amount exceeds the quota, tax shall be paid according to regulations. Those who fail to reach the threshold of value-added tax (monthly sales of 5000-20000 yuan, different provinces) may be exempted from value-added tax, urban construction tax and education surcharge.
To sum up, there are still some special circumstances when the self-employed pay taxes. Some service industries do not need to pay national tax, but they are exempt from national tax and still need to pay certain local taxes. Also, self-employed individuals whose monthly income is less than 5,000 yuan do not need to pay VAT. In addition, when handling national tax and local tax, please be sure to handle it within 30 natural days after receiving the business license, otherwise you will have to pay a fine.
Legal basis:
"People's Republic of China (PRC) tax collection and management law" fourth.
Units and individuals who are obligated to pay taxes according to laws and administrative regulations are taxpayers.
Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents.
Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.
Article 62
Taxpayers fail to file tax returns and submit tax information within the prescribed time limit, or withholding agents fail to submit tax withholding and collecting reports and relevant materials to the tax authorities within the prescribed time limit, and the tax authorities shall order them to make corrections within a time limit and may impose a fine of less than 2,000 yuan; If the circumstances are serious, a fine of not less than two thousand yuan but not more than ten thousand yuan may be imposed.