1, calculation formula: taxable income = total income? -Costs, expenses and losses-thresholds

2. Taxable amount = taxable income × applicable tax rate

Two. Measures for the collection of individual income tax for individual industrial and commercial households

1. Audit and collection: individual industrial and commercial households are required to set up account books and keep accounts according to legal and valid vouchers. When paying individual taxes, the taxable income is calculated according to the balance of total income minus costs, expenses and losses, and then the individual tax is calculated and paid according to the applicable tax rate.

2. Regular quota collection: For individual industrial and commercial households without account books, the tax authorities shall verify the taxable business amount or income of taxpayers in a certain operating period according to law and according to procedures, so as to determine their taxable amount. The factors that affect their personal income tax are turnover and personal income tax collection rate.

Extended data

Tax object

1, legal object

Taxpayers of personal income tax in China are those who live in China and those who do not live in China, including citizens in China, foreigners who get income from China and compatriots from Hong Kong, Macao and Taiwan.

2. Resident taxpayers

Individuals who have a domicile in China or have no domicile in China for 1 year are resident taxpayers and should bear unlimited tax obligations, that is, they should pay individual income tax according to law on their income obtained in China and abroad.

3. non-resident taxpayer

Individuals who have neither domicile nor residence in China, or who have lived in China for less than one year, are non-resident taxpayer, bear limited tax obligations, and pay personal income tax according to law only on their income obtained from China.

Operating income

Including the income from the production and operation of individual industrial and commercial households and the income from the contracted operation and lease operation of enterprises and institutions.

The income from the production and operation of individual industrial and commercial households includes four aspects:

(1) Urban and rural individual industrial and commercial households have been approved by the administrative department for industry and commerce to start business and obtain a business license, and engaged in the production and operation of industries such as industry, handicrafts, construction, transportation, commerce, catering, service and repair.

(2) Income obtained by individuals who have obtained business licenses with the approval of relevant government departments and engaged in paid service activities such as running schools, medical care and consulting.

(3) Income obtained by other individuals from individual industrial and commercial production and operation refers to income obtained by individuals from temporary production and operation activities.

(four) the taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.

The income from contracted operation and leased operation of enterprises and institutions refers to the income obtained by individuals from contracted operation, leased operation and subcontracting or subletting, including the income of wages and salaries obtained by individuals on a monthly or hourly basis.

Baidu encyclopedia-personal income tax