(1) There are two forms of individual income tax collection for self-employed individuals: audit collection and quota verification collection.

(2) If individual industrial and commercial households implement audit collection, the cost will be deducted from the total income of each tax year. The balance after expenses and losses is the taxable amount. Personal income tax is calculated and paid at 5% of the excess progressive tax rate.

(3) The wages of individual owners are not regarded as costs. After deducting expenses, the taxable amount and the taxable amount shall be calculated according to the taxable income of the industry. The formula is: annual taxable sales income × taxable income tax rate (determined by the tax bureau, different industries) × annual taxable amount × tax rate-monthly taxable amount quick deduction/12.

Self-employed people are classified according to the collection method:

(1) Quota collection: mainly for individual operators, the income tax is directly approved.

(2) Collection of approved taxable income: mainly for general taxpayers, the income is calculated and paid according to the pre-approved taxable income according to the specific occurrence of total income or cost.

Three, individual industrial and commercial households approved by monthly turnover classification:

(1) If the monthly turnover is less than 20,000 yuan, it will be 0% at the time of payment;

(2) If the monthly turnover is between 20,000 yuan and 50,000 yuan, the part above 20,000 yuan shall be paid at the individual income tax rate of 0.6% for self-employed households, and the part below 20,000 yuan shall not be taxed;

(3) If the monthly turnover is between 50,000 yuan and 6,543,800 yuan, the part exceeding 20,000 yuan shall be taxed at the personal income tax rate of 654.38+ 0%, and the other parts shall remain unchanged;

(4) If the monthly turnover exceeds 6.5438+10,000 yuan, the tax rate of the part exceeding 20,000 yuan will be levied according to the tax of 654.38+ 0.8%.

Legal basis:

Article 14 of the Measures for the Administration of Registration of Individual Industrial and Commercial Households

To apply for registration of individual industrial and commercial households, the following documents shall be submitted:

(a) the application for registration of individual industrial and commercial households signed by the applicant;

(2) the identity certificate of the applicant;

(3) Proof of business place;

(4) Other documents required by the State Administration for Industry and Commerce.

Article 17

Where the business scope of application for registration or change of registration involves items that need to be approved before registration as stipulated by national laws, administrative regulations or the State Council decisions, it shall be reported to the relevant state departments for approval before applying for registration, and relevant approval documents shall be submitted to the registration authority.