The standard of regular fixed levy for self-employed persons varies according to the monthly turnover. The details are as follows: monthly turnover of less than 20,000 yuan is not subject to personal income tax; monthly turnover of 20,000 yuan - 50,000 yuan, more than 20,000 yuan in accordance with the approved collection rate of 0.6% of the individual businessman's personal income tax tax, not more than 20,000 yuan of the portion of the tax is not payable; monthly turnover of 50,000 yuan - 100,000 yuan, more than 20,000 yuan in accordance with the approved collection rate of 1 percent of the individual businessman's personal income tax. The approved collection tax rate will be levied and the other parts will remain unchanged; if the monthly turnover is more than 100,000 yuan, the part exceeding 20,000 yuan will be levied according to the approved collection tax rate of 1% for individual industrial and commercial households' personal income tax. In addition, there are no requirements for individual businessmen to apply for regular quotas.
Which is better, regular fixed amount or approved levy for individual households
For individual households, regular fixed amount is more advantageous under the current policy.
Periodic fixed levy: It is mainly applicable to individual business households whose production and operation scale is small and cannot reach the standard of setting up books as stipulated in the Interim Measures for the Management of Individual Business Households, as well as eligible individual enterprises and partnerships.
Individual industrial and commercial households are no strangers, such as lodging hotels, fruit stores, cake stores, restaurants and so on, and individuals engaged in industrial and commercial operations, are individual industrial and commercial households, of course, in the name of the family is also possible.
The tax incentives are:
(1) From the 2nd quarter of 2021, you can enjoy VAT and personal income tax exemption up to 450,000 RMB per quarter.
(2) Sales revenue exceeding a fixed amount, the full amount of value-added tax and personal income tax, personal income tax can be paid at the rate of personal tax business income tax rate set by the competent tax authorities in each region, the tax burden is lower.
(3) Starting from January 2021, for the portion of the annual taxable income of individual industrial and commercial households whose business income does not exceed 1 million yuan, the personal income tax will be reduced by half on top of the existing preferential policies, and can be enjoyed without distinguishing between the methods of collection.
Approved levy, that is, directly based on the amount of income of the taxpayer, multiplied by the approved levy rate for collection, the specific levy rate varies with different regions and industries.
Approved levy refers to the taxpayer's accounting books are not sound, the information is incomplete and difficult to check, or other reasons are difficult to accurately determine the amount of tax payable by the taxpayer, the tax authorities to use a reasonable method of tax payable by the taxpayer approved according to law is a form of levy, referred to as approved levy.
The tax authorities are authorized to adopt one or more of the following methods to approve the amount of tax payable:
1. to approve the tax burden with reference to the local taxpayers of the same type of industry or of similar industry with similar scale of operation and level of income;
2. to approve the tax payable in accordance with the method of business income or cost plus reasonable expenses and profit;
3. to approve the tax payable in accordance with the method of consumption of raw materials, fuels, power and other projections;
4. to approve the tax payable in accordance with the method of tax collection. Raw materials, fuel, power, etc. projected or measured approved;
4. Approved in accordance with other reasonable methods.
The tax authorities approved the collection of taxes to follow the legal authority and procedures to protect the legitimate rights and interests of taxpayers. For example, for individual business households to approve the collection of taxes, must follow the legal procedures, that is, self-reporting, typical survey, quota approval, issued a quota.
I hope the above can help you, if you have other questions please consult a professional lawyer.
Legal basis: Article 7 of the Measures for the Administration of Regular Quota Collection of Taxes for Individual Commercial and Industrial Households
The tax authorities shall approve the quota according to the scale of the regular quota household's business, business area, business content, industry characteristics, management level and other factors, and may adopt one or more of the following methods for approval:
According to the projected raw materials, fuels, and power consumed
Approved on the basis of cost plus reasonable expenses and profits;
Approved on the basis of stocktaking;
Approved on the basis of invoices and relevant documents;
Approved on the basis of bank transactions;
Approved on the basis of bank transactions;
Approved on the basis of production and operation conditions of taxpayers of the same size and in the same region in the same kind of industry or in a similar industry. Approved by reference to the production and operation of taxpayers of the same size and in the same region in the same or similar industries;
Approved by other reasonable methods.
The tax authorities shall use modern information technology to approve the quotas and enhance the standardization and rationality of the approval work.