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Do individual small restaurants in Hangzhou have to pay taxes?

yes.

specifically speaking, paying taxes means that according to the provisions of various national tax laws, a part of the collective or individual income is paid to the state according to a certain ratio. Paying taxes, also known as paying taxes, is the behavior and process of natural persons or legal persons paying taxes to the state tax authorities. For example, paying customs duties means that importers and exporters or their agents pay taxes to banks designated by the customs within a specified date on the basis of tax payment certificates issued by the customs.