Legal analysis: According to Chinese laws, small processing plants also have to pay taxes. 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. Taxpayers who fail to file tax returns and submit tax information within the prescribed time limit shall be ordered by the tax authorities to make corrections within a time limit and may be fined up to 2,000 yuan.

Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.

Article 4 Units and individuals that 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 If a taxpayer fails to file tax returns and submit tax information within the prescribed time limit, or a withholding agent fails to submit a tax withholding report and relevant information to the tax authorities within the prescribed time limit, the tax authorities shall order it 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.