According to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Adjusting the Scope of Income Tax Collection and Management of New Enterprises (Guo Shui Fa [2008] 120), new enterprises refer to new enterprises recognized according to the standards stipulated in the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Recognition Standards for New Enterprises with Preferential Enterprise Income Tax Policies (Cai Shui [2006] 1 20). New enterprises should meet the following two requirements at the same time. Second, in the actual contribution of equity investors (shareholders or other equity investors) in newly established enterprises, the cumulative contribution of non-monetary assets such as fixed assets and intangible assets shall generally not exceed 25% of the registered capital of newly established enterprises.

In 2008, the newly established individual industrial and commercial households, sole proprietorship enterprises and partnership enterprises were changed into limited liability companies, which means that investors have changed from unlimited liability to limited liability, which is actually equivalent to canceling the original individual industrial and commercial households, sole proprietorship enterprises and partnership enterprises. Although the establishment registration can be obtained in the industrial and commercial department, as long as the proportion of non-monetary assets in the equity investment of the new company exceeds 25%, it is still regarded as an old enterprise. The original tax authorities are still responsible for collecting enterprise income tax. If the proportion of non-monetary assets in the equity investment of the new company is less than 25%, it shall be regarded as a newly established enterprise, and the competent tax authority for enterprise income tax shall be determined according to the provisions of State Taxation Administration of The People's Republic of China Guoshuifa [2008]120.

Requirements for self-employed persons to change into companies:

1. Operators of self-employed households need to become investors of the company after becoming a company.

Self-employed people have their own names.

3. After the self-employed person turns into a company, the business place remains unchanged.

4. After the self-employed person turns into a company, the pre-licensing items in the business scope will no longer be added.

5, self-employed projects must conform to the national industrial development policy.

6. Self-employed individuals are the same as the registration authority after being converted into a company.

7. Self-employed individuals have not been sealed up before being transferred to the company, nor have they investigated the outstanding cases.

What kind of enterprise should the self-employed become? Submit relevant information. After the approval of the industrial and commercial department, the business license will be issued, and at the same time, the certificate of transformation and upgrading of self-employed individuals to enterprises will be issued.

The above introduces how to pay income tax when a self-employed person changes into a limited company, mainly depending on whether it accounts for more than 25% of the equity investment in non-monetary assets of the new company. To set up the corresponding subjects, I hope it will help everyone. This is the whole content of this article. If you encounter other problems in actual operation, you can consult our online Q&A teacher!