1. Individual businessmen are exempted from value-added tax (VAT):
Individual businessmen are generally small-sized taxpayers, and therefore they can enjoy the preferential policies for small-sized taxpayers. From April 1 to December 31, 2022, small-scale taxpayers applying 3% levy rate are exempted from VAT; businesses applying 5% levy rate are still subject to the previous exemption policy as follows:
Businesses with 3% levy rate; exempted from VAT from April 2022 until the end of the year (more than 5 million need to be converted to general taxpayers);
Businesses with 5% levy rate: up to 150,000 per month (up to 450,000 per quarter), exempt from VAT.
2. Individual industrial and commercial households with taxable income not exceeding 1 million yuan part of the individual income tax by half:
(1) Preferential content: from January 1, 2021 to December 31, 2022, the individual industrial and commercial households operating income of annual taxable income of not more than 1 million yuan part of the individual income tax by half on the basis of the current preferential policies.
(2) Conditions for enjoyment:
It is available regardless of the method of levy;
It is available at the time of tax prepayment;
The amount of tax exemption is calculated according to the following method:
Tax exemption amount = (taxable amount of the portion of the individual industrial and commercial enterprise's business income whose taxable income is not more than one million yuan - the amount of tax exemption of the other policies) multiplied by the amount of tax exemption for the portion of individual industrial and commercial enterprise's business income which is not more than one million yuan. Tax deduction = (taxable income of individual industrial and commercial households with taxable income from business not exceeding 1 million yuan divided by taxable income from business) multiplied by (1-50%);
. The amount of tax deduction is entered in the "Tax Deduction" column of the corresponding business income tax return, and is accompanied by the "Report on Individual Income Tax Deduction Matters".
3. Individual industrial and commercial households to reduce the local "six taxes and two fees" policy:
(1) Preferential content:
From January 1, 2022 to December 31, 2024, the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government, based on the actual situation in the region, as well as macroeconomic regulation and control needs to be determined.
Individual industrial and commercial households that have already enjoyed other preferential policies on resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty, cultivated land occupation tax, education surcharge and local education surcharge in accordance with the law are entitled to enjoy these preferential policies on top of each other.
(2) Conditions for enjoyment:
Individual industrial and commercial households are entitled to tax incentives in accordance with the tax rate determined by the people's governments of the provinces, autonomous regions and municipalities directly under the central government in accordance with the actual situation in the region and the need for macro-control.
Legal basis:
Notice on the Implementation of Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Industrial and Commercial Households
I. For the part of the small and micro-profit enterprises whose annual taxable income does not exceed 1 million yuan, in the "Circular of the Ministry of Finance and the State Administration of Taxation on the Implementation of the Policy of Preferential Tax Reduction and Exemption for Small and Micro Enterprises" (Caixin [2019] No. 13), on the basis of the preferential policies stipulated in Article 2, the enterprise income tax shall be further reduced by half.
II. For individual industrial and commercial households with annual taxable income not exceeding 1 million yuan, on the basis of the current preferential policies, the individual income tax will be reduced by half.
Third, the implementation period of this announcement is from January 1, 2021 to December 31, 2022.
Announcement of the State Administration of Taxation on Matters Relating to the Implementation of Preferential Income Tax Policies for Supporting the Development of Small and Micro-profit Enterprises and Individual Industrial and Commercial Households
II. Matters Relating to the Policy of Reducing the Individual Income Tax of Individual Industrial and Commercial Households by Half
(1) For the portion of the business income of individual industrial and commercial households with an annual taxable income of not more than one million yuan, on top of the existing preferential policies, the individual income tax shall be reduced by half. half of the individual income tax. Individual industrial and commercial households can enjoy this without distinguishing the mode of collection.
(2) Individual industrial and commercial households can enjoy the preferential policy at the time of prepayment of tax, and their annual taxable income is temporarily judged according to the situation as of the end of the period to which the current filing belongs, and is calculated on a yearly basis at the time of annual remittance, with the excess refunded and the minimum replenished. If an individual industrial and commercial household obtains business income from more than two places, it is necessary to consolidate the annual taxable income of the individual industrial and commercial household's business income and recalculate the amount of tax exemption and reimbursement in the annual summary tax return.
(3) Individual industrial and commercial households shall calculate the amount of tax exemption according to the following method:
Tax exemption = (taxable amount of the portion of the taxable income from business income of individual industrial and commercial households not exceeding one million yuan - tax exemption under other policies x taxable amount of the portion of the taxable income from business income of individual industrial and commercial households not exceeding one million yuan ÷ taxable income from business income) x (1 - 50%)
(4) Individual industrial and commercial households are required to fill in the tax exemption amount calculated according to the above method into the "Tax Exemption Amount" column of the corresponding business income tax return, and attach the "Individual Income Tax Exemption Matters Report Form". For individual industrial and commercial households filing through the Electronic Taxation Bureau, the tax authorities will provide pre-filling services for the tax exemption amount and report form of the preferential policy. For regular fixed-rate individual industrial and commercial households that have implemented simplified declaration, the tax authorities will transfer the tax in accordance with the tax amount after the reduction or exemption.
Announcement on the Further Implementation of the "Six Taxes and Two Fees" Reduction and Exemption Policies for Small and Micro Enterprises
First, the people's governments of the provinces, autonomous regions and municipalities directly under the central government shall, according to the actual situation in the region and the needs of macroeconomic regulation and control, determine that the tax rate for VAT small-sized taxpayers, small and micro-profit enterprises and individual industrial and commercial enterprises can be reduced by 50% within the range of the tax amount of the resource tax reduction. The people's governments of provinces, autonomous regions and municipalities directly under the central government shall, in accordance with the actual situation in the region and the needs of macroeconomic control, determine that small-scale taxpayers of value-added tax, small and micro-benefit enterprises and individual industrial and commercial households can be subject to a 50% reduction in the amount of tax on resource tax, urban maintenance and construction tax, real estate tax, urban land-use tax, stamp duty (excluding the stamp duty on securities transactions), cultivated land occupancy tax, surcharge on education fees and local education surcharge.
Two, small-scale taxpayers of value-added tax (VAT), small and micro-profit enterprises and individual industrial and commercial households that have already enjoyed other preferential policies in accordance with the law in respect of resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty, arable land occupation tax, surcharge on education fees and surcharge on local education can enjoy the preferential policies stipulated in the first article of this Announcement on a superposition basis.
Announcement on Continuing the Implementation of Matters Related to the Deferral of Partial Tax Payment by Small, Medium and Micro Enterprises in the Manufacturing Sector
I. Continuing the Deferral of Partial Tax Payment for the Fourth Quarter of 2021
Announcement of State Administration of Taxation (SAT) and Ministry of Finance (MOF) on the Matters Related to the Deferral of Partial Tax Payment by Small, Medium and Micro Enterprises in the Manufacturing Sector for the Fourth Quarter of 2021 (No. 30 of 2021) The policy of deferring the payment of part of the taxes and fees for the fourth quarter of 2021 for small, medium and micro enterprises in the manufacturing industry as stipulated in the Announcement (No. 30 of 2021) continues to extend the deferment period for six months.
The above enterprises that have paid the deferred taxes and fees for the fourth quarter of 2021 before the implementation of the Announcement after January 1, 2022, may voluntarily choose to apply for a tax refund and enjoy the continuation of the deferred payment policy.
Notice on the phased implementation of the policy of deferring payment of enterprise social insurance premiums in special hardship industries
I. Scope of application. The deferred payment applies to the unit-payable portion of the three social insurance premiums of catering, retail, tourism, civil aviation, and road and waterway railroad transportation enterprises. Individual industrial and commercial households with hired workers who participate in social insurance in the form of units in the above industries and other units shall defer payment with reference to the enterprise approach. The individual employee should pay part of the enterprise should fulfill the obligation of withholding and paying according to the law.
Individual industrial and commercial households and various types of flexibly employed persons who participate in the basic pension insurance for enterprise employees in their personal capacity may voluntarily suspend their contributions if they have difficulties in paying the contributions in 2022, and they may make up for the unpaid months in 2022 before the end of 2023, and they may independently choose their own contribution base within the upper and lower limits of the contribution base of the local individuals in 2023, and the years of contributions are cumulative.
Announcement on VAT Exemption for Small-Scale Taxpayers
In order to further support the development of small and micro-enterprises, the relevant VAT policies are announced as follows:
From April 1, 2022, to December 31, 2022, the VAT exemption is granted to small-scale taxpayers of VAT on their taxable sales revenues for which the taxable rate of 3% applies; the pre-paid VAT rate of 3% applies of prepaid VAT items, and suspend prepayment of VAT.