This law is not applicable to sole proprietorship enterprises and partnership enterprises.
According to the Reply of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on the Collection of Individual Income Tax for Running Schools by Social Forces (Guo Shui Han [1998] No.738) and the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the income obtained by individuals after obtaining the permission of relevant government departments shall be subject to the taxable items of "income from production and operation of individual industrial and commercial households". Accordingly, individual income tax should be levied on the part of the income obtained by individual school operators for personal consumption.
According to the Reply of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Collection of Individual Income Tax on Income Obtained by Individuals Holding Various Classes, Guoshuihan [1996] No.658;
A, individuals approved by the relevant government departments and obtained a license to hold classes, training courses, the income of the class belongs to the "individual industrial and commercial households production and business income" tax items, should be handled in accordance with the provisions of the individual income tax law of People's Republic of China (PRC) (hereinafter referred to as the tax law).
Second, individuals do not need to be approved by the relevant government departments to hold classes and training courses, and their income from running classes belongs to the taxable items of "income from labor remuneration", and personal income tax should be levied according to the provisions of the tax law. Among them, the income of each class is determined according to the following methods: if the tuition fee is charged at one time, the income obtained in the first period will be taken as one time; Tuition fees are collected by installments, and the income obtained every month is regarded as one time.
Therefore, for institutions or organizations that run schools by social forces and are established with the approval of relevant government departments in accordance with laws and regulations, and receive the Registration Certificate of Private Non-enterprise Units (Partnerships) and the Registration Certificate of Private Non-enterprise Units (Individuals), the income from running schools shall be subject to personal income tax, and the income from running schools of such institutions shall not be subject to enterprise income tax.