Individual business catering can make up for previous years' losses.

Article 2 of the Measures of the State Administration of Taxation for Calculating Individual Income Tax of Individual Industrial and Commercial Households (Order No. 35 of the State Administration of Taxation) stipulates that individual industrial and commercial households that are subject to checking of accounts shall calculate and declare the payment of individual income tax in accordance with the provisions of these Measures. Article 17 stipulates that losses incurred in the tax year of an individual industrial or commercial enterprise are allowed to be carried forward to the following years and made up with the production and operation income of the following years, but the maximum number of years to be carried forward shall not exceed five years. According to the above provisions, the checking of individual business households incurred losses, can be made up for the next five years of production and business income.