Note: This index is not calculated, but determined in advance by the tax authorities according to the actual situation of the enterprise and certain standards, procedures and methods.
Where the approved taxable income rate is levied, the formula for calculating the payable income tax is:
Income tax payable = taxable income × applicable tax rate
Taxable income = total income × taxable income
Or: cost ÷( 1- taxable income rate) × taxable income rate.
The process of determining the taxable income rate of enterprises by tax authorities: 1. Typical investigation. The local tax authorities of counties (cities, districts) shall organize a survey of typical business households every year according to the local economic development and changes in the profitability of enterprises. The selection of typical business households should be representative, and the investigation should cover different industries, lots and scales. The data used should be true and reliable, reflecting the real operating results of the enterprise. Through typical investigation, we can master the industry characteristics and average profit rate of businesses of different industries and sizes, and determine the taxable income rate or taxable income of taxpayers of different industries and sizes in the region. The second is household measurement. According to the taxable income rate or taxable amount range determined by the local tax authorities of counties (cities, districts), the competent tax authorities shall calculate the taxpayers approved for collection in the local area one by one, fill in the Calculation Form for Approved Collection of Enterprise Income Tax and report it to the local tax authorities of counties (cities, districts). The third is to determine the taxable income rate or taxable amount. The local tax authorities at the county (city, district) level shall determine the taxable amount or taxable income rate of each taxpayer according to the Calculation Table for Approved Collection of Enterprise Income Tax submitted by the competent tax authorities and combined with typical investigations, and fill in specific opinions.
However, the taxable income rate approved by the tax authorities shall conform to the scope determined by People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China:
Industry, transport and commerce 7-20%
Construction and real estate development 10-20%
Catering service industry 10-25%
Entertainment industry 20-40%
Other industries 10-30%