How to deduct personal income tax from individual contracted projects: contracted operation is a specific business project, and personal income tax is levied on the income from contracted operation and leased operation of enterprises and institutions. The calculation formula of personal income tax payable on the income from contracted operation and leased operation of enterprises and institutions is: tax payable = (annual income-necessary expenses) x applicable tax rate-quick deduction.
The tax basis is: the taxable income is the balance of the total income of each tax year after deducting the necessary expenses from the contracted operation and leased operation of enterprises and institutions. The total income in each tax year refers to the operating profits and income in the nature of wages and salaries shared by taxpayers in accordance with the provisions of the contract for contracted operation and leased operation.