Example 4-2?Calculate Good Again Restaurant is a sole proprietorship engaged in catering services, and its investor is Zhang, a Chinese citizen.For the year 2018, it realized revenues of 1,000,000 yuan, costs of 600,000 yuan, and expenses and taxes of 373,500 yuan during the period, of which 70,000 yuan was paid to the investor for his own salary, and there were no other tax adjustments. The year has been prepaid personal income tax of 5,000 yuan.

Zhang had no other operating business income that year.

Requirements: Calculate the individual income tax payable on Zhang's income through the sole proprietorship.

AnalysisAccording to the Individual Income Tax Law, income from production and business operations refers to the actual income generated in a complete tax year, and is subject to the practice of calculating tax payable on an annual basis, making prepayment on a monthly or quarterly basis, and making remittance at the end of the year. As the new 2018 Individual Income Tax Law came into effect on January 1, 2019, in order to enable individual industrial and commercial households, sole proprietorships and partnership investors to effectively enjoy the tax reduction for the latter three months of 2018, it is necessary to implement a segmented computation of their taxable amount for 2018 at the time of remittance.

Therefore, when calculating the taxable income for the year 2018 according to the relevant provisions of the tax law, the standard of expense deduction involving individual proprietors of sole proprietorships and investors should be differentiated between the first nine months and the last three months, and be calculated in accordance with the tax law before and after the amendment, respectively. On this basis, the taxable amount should be calculated in segments, i.e., the taxable income for the whole year should be calculated according to the tax rates corresponding to the tax rate table before and after the modification to calculate the taxable amount for two whole years, and then multiplied by the proportion of time that the tax rate table applies to the whole year before and after the modification, and then summed up to arrive at the taxable amount for the whole year.

The annual taxable amount in the case is calculated as follows.

First, calculate the income at the level of sole proprietorship: 100-60-37.35+7=96,500 (yuan); second, calculate the business income at the level of investor:

Zhang's full-year taxable income: 965,0000-3500×9-5,000×3=50,000 (yuan); and third, calculate the full-year tax payable by the investor at the end-of-year remittance of the individual income tax.

(1) Calculate the tax payable for the first three quarters as:

(50,000×20%-3,750)×9÷12=4687.5 (yuan); (2) Calculate the tax payable for the fourth quarter as:

(50,000×10%-1,500)×3÷12=875 (yuan); (3) Calculate the tax payable for the whole year as:

(50,000×10%-15,500)×3÷12=875 (yuan); (3) Calculate the tax payable for the whole year as:4687.5 +875=5562.5 (yuan).

From the above calculations, it can be seen that Zhang Mou remittance should pay back the individual income tax: 5562.5-5000=562.5 (yuan).