Individual industrial and commercial households need to pay taxes according to law, including value-added tax, personal income tax, urban construction tax, stamp duty, property tax, etc. Individual industrial and commercial households shall submit tax returns to the tax authorities within 0/5 days after the end of each month or quarter, and pay taxes in advance. Individual income tax is calculated on an annual basis, and the excessive progressive tax rate of 5% to 35% is applicable. However, there are also special circumstances. For example, laid-off workers from state-owned enterprises engaged in self-employed and cottage industries may be exempted from personal income tax for one year upon examination and approval by the local tax authorities. If the dependents are engaged in self-employment, they will be exempted from personal income tax within three years from the date of receiving the tax registration certificate.

Tax classification of individual industrial and commercial households:

1. VAT: applicable to individual industrial and commercial households selling goods, providing processing, repair and replacement services, sales services, intangible assets and real estate;

2. Personal income tax: the income of individual industrial and commercial households is collected after deducting costs and expenses;

3. Urban maintenance and construction tax: calculated and levied according to the amount of value-added tax, consumption tax and business tax paid;

4. Education surcharge: it is also calculated according to the amount of value-added tax, consumption tax and business tax paid;

5. Local education surcharge: determine the collection amount according to the amount of value-added tax, consumption tax and business tax paid;

6. Property tax: property owned by individual industrial and commercial households needs to pay property tax according to regulations;

7. Land use tax: individual industrial and commercial households that use land pay land use tax according to land area and use;

8. Stamp duty: Stamp duty shall be paid in accordance with regulations if documents such as financial account books and contracts are involved.

9. Resource tax: if the business of individual industrial and commercial households involves the exploitation of mineral resources, they need to pay resource tax.

10. Environmental protection tax: individual industrial and commercial households that discharge pollutants are subject to environmental protection tax according to their emissions.

To sum up, individual industrial and commercial households need to pay taxes according to law, including value-added tax, personal income tax, urban construction tax, stamp duty and property tax, and submit tax returns to the tax authorities within 15 days after the end of each month or quarter to pay taxes in advance. Individual income tax is calculated on an annual basis, and the excessive progressive tax rate of 5% to 35% is applicable. However, under special circumstances, some individual industrial and commercial households may be exempted from personal income tax for one or three years. In order to understand the specific tax situation and preferential tax policies, it is recommended to consult the local taxation bureau.

Legal basis:

Measures for the calculation of individual income tax of individual industrial and commercial households

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Individual industrial and commercial households that implement audit collection shall calculate, declare and pay individual income tax in accordance with the provisions of these measures. Article 7 The taxable income is the total income of individual industrial and commercial households in each tax year, after deducting costs, expenses, taxes, losses, other expenses and losses allowed to make up for previous years.