Enterprise income tax is the income tax levied on the production and operation income and other income of Chinese enterprises and other organizations with income. A sole proprietorship enterprise refers to an unincorporated enterprise invested and operated by a natural person. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise. According to the relevant provisions of the current tax law, the normal business income and other income of a sole proprietorship enterprise should pay personal income tax for production and operation, not enterprise income tax. According to the provisions of Article 2 of the Law on Solely Owned Enterprises, "Solely owned enterprises as mentioned in this Law refer to business units established in China according to this Law, which are invested by natural persons, and their property is owned by the investors themselves, and the investors bear unlimited liabilities for the debts of the enterprises with their personal property".

In the application of income tax policy, it is relatively simple to apply tax policy to sole proprietorship enterprises. According to Guo Fa [2000] 16 "Notice of the State Council on Income Tax Collection of Sole proprietorship enterprises and partnership enterprises", "Since June 1 2000, the enterprise income tax has been stopped for sole proprietorship enterprises and partnership enterprises, and the income from the production and operation of investors is compared with the income from the production and operation of individual industrial and commercial households, that is, the income obtained by investors on the production line of sole proprietorship enterprises.

Value-added tax: First of all, sole proprietorship enterprises are also divided into small-scale and general taxpayers. Business dealings or business operations are also subject to value-added tax, and the provisions on the payment of value-added tax shall apply. Small-scale tax rate is 3% (during the epidemic1%); At the same time, those who meet the standards of small and micro enterprises enjoy preferential policies of exemption from value-added tax;

Enterprise income tax: According to the national document "Provisions of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China and the Ministry of Finance on Printing and Distributing Individual Income Tax for Investors of Sole proprietorship Enterprises and Limited Partnerships", sole proprietorship enterprises are not required to pay enterprise income tax;

Urban maintenance and construction tax and education surcharge: referred to as surcharge, paid according to value-added tax, the tax rate varies from place to place, but this tax is still very low;