According to the Notice of the Ministry of Finance on Printing and Distributing the Standardized Management Measures for Small-scale Taxpayers in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), if the sales and input of small-scale taxpayers do not exceed 5 million yuan, they can pay taxes in accordance with the prescribed standardized management measures. It stipulates that the input of small-scale taxpayers does not include purchased fixed assets, real estate and services with a tax rate exceeding 5%, real estate leasing and intangible assets. At the same time, for small-scale taxpayers engaged in production and business activities, the proportion of bulk commodities in their input shall not exceed 50%. Therefore, the proportion of bulk commodity investment cannot exceed 50%.

In order to simplify taxpayers' tax management procedures, reduce taxpayers' tax costs and improve the efficiency of tax collection and management, standardized management measures for small-scale taxpayers are formulated.