In recent years, the individual business because there are some regional advantages, is more and more entrepreneurs pay attention to, and individual business personal tax in the actual operation of the tax involved in what tax collection methods, this article intends to combine practical experience with more common language, to share with you.

1, approved collection

Approved collection is generally refers to the approved taxable income rate of individual households, and sometimes directly approved personal tax rate.

The former is based on sales, approved taxable income tax, and then accounted for personal tax according to the five progressive levels of income from production and business.

The latter is more simple and intuitive as it directly approves the personal tax rate. For example, some parks in Henan Province are directly approved by the personal tax rate, while some parks in Shanxi Province can also provide the approval notice.

2, fixed rate

Fixed rate is common for small and medium-sized individual households.

That is, the tax to approve a turnover, as long as your turnover does not exceed this number, according to the number of taxes generated by the payment, fixed monthly.

If it is more than that, the tax will re-authorize your business income.

So some of the individual households related to people's livelihoods use this approach.

3, with the levy rate and advance levy rate.

In some areas, self-employed people are authorized to pay personal tax on production and business according to the rate or pre-taxation rate.

These rates are divided into two types: one is calculated according to the taxable income rate, and the other is calculated directly according to the personal tax rate.

Although they are called differently, the final result is a lower tax burden.

Let's take an example:

A self-employed person has an income of 5 million dollars.

If it is calculated according to the approved levy, with the levy rate or advance levy rate, the comprehensive cost is only about.

That's only 90,000 yuan a year in personal taxes.

But if the entrepreneur does not use an individual business, but a limited company, if there is a profit of 5 million, you need to pay 25% of the corporate income tax and 20% of the personal tax, a total of 40%, that is, 2 million.

So the difference between 90,000 and 2 million lies in the choice of a different form of business organization and place of registration.

Therefore, entrepreneurs in the early stage of business, you need to understand these policies, so as to determine the different forms of registration and organization: if the brain-based labor, such as self media, training instructors, designers, technicians, etc., these people almost no too much cost, and the profit margins are high, the registration of the place is not sensitive to the park, you can consider the use of the park can be approved for the collection of taxes.

But if the individual's territoriality is high, such as catering stores, grocery stores, hair salons and other projects related to the lives of residents, you can only choose to register on the ground, is not very suitable for the choice of parks and approved levy, most of the use of fixed levy-based.

So don't underestimate the individual business, use it well, you can greatly reduce costs and increase profits. These contents, in the "Golden Tax IV control under the tax management and tax planning" book has been introduced, the rational use of individual business households, compliance planning, enterprises can be more long-lasting.