The difference between the production and operation income of self employed individuals and individu

1. Different tax subjects.

Individual income tax refers to the income obtained by individuals, and self-employed income refers to the individual income tax of individual industrial and commercial investors.

Second, the tax items are different.

Individual wages and salaries are subject to individual income tax according to wages and salaries, and self-employed income is paid according to investors' individual income tax.

1. Including differences: individual income tax includes production and operation income tax, and there are many items of individual income tax, such as our common wage and salary income tax, personal production and operation income and personal income tax, author's remuneration income, and unexpected income tax.

2. The formula is different: the tax payable on the production and operation income of individual industrial and commercial households = (annual income - costs, expenses and losses) The applicable tax rate - quick deduction.

3. Different adaptation of laws and regulations: According to the provisions of the second paragraph of Article 8 of the Decision on Amending the Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China (Order No. 600), the production and business income of individual industrial and commercial households refers to: the income obtained by individual industrial and commercial households engaged in the production and operation of industry, handicrafts, construction, transportation, commerce, catering, services, repair and other industries; Income obtained by individuals who have obtained licenses with the approval of relevant departments and engaged in school-running, medical, consulting and other paid service activities; income obtained by other individuals engaged in individual industrial and commercial production and operation; The taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.

The tax type of individual income tax includes the tax item of production and operation income.

Self-employed individuals do not need to pay corporate income tax, and they have to pay individual income tax on production and operation income, which is the total income of each tax year, and the balance of deducting costs, expenses and losses shall be paid individual income tax. The tax rate refers to the applicable table (applicable table of production and business income of individual industrial and commercial households and income from contracted and leased operations of enterprises and institutions).

Personal income tax refers to the tax paid by individuals on wages and salaries.

Individual income tax includes [business income] and [comprehensive income].

The production and operation of self-employed individuals belong to [business income], and the personal salary income belongs to [comprehensive income].

The income from production and operation of individual industrial and commercial households refers to:

1. Income obtained by individual industrial and commercial households engaged in the production and operation of industry, handicrafts, construction, transportation, commerce, catering, services, repair and other industries;

2. Income obtained by individuals who have obtained licenses with the approval of relevant departments and engaged in school-running, medical, consulting and other paid service activities;

3. Income obtained by other individuals engaged in individual industrial and commercial production and operation;

4. The taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals.

In China, individual industrial and commercial households are also one of the main industrial and commercial business entities, but unlike general business entities, individual industrial and commercial households do not need to pay enterprise income tax, but individual income tax. Therefore, the next step will be to introduce you to the knowledge about whether individual businesses need to pay corporate income tax and related aspects, hoping to help you solve the corresponding problems.

1. Do individual businesses need to pay enterprise income tax?

Individually-owned businesses are not taxpayers of enterprise income tax; The income needs to be calculated and paid for personal income tax, not corporate income tax.

2. Common problems of individual industrial and commercial households

1. Individually-owned businesses shall be approved for registration.

Individually-owned businesses shall be approved and registered in accordance with law. Regardless of whether it is a natural person or a family, anyone who wants to engage in self-employment must apply to the market supervision and administration department in accordance with the law, and after approval and registration by the market supervision and administration department, issue a business license for individual business and obtain the business qualification of an individual industrial and commercial household.

2. The business scope of individual industrial and commercial households.

Individually-owned businesses shall engage in industrial and commercial business activities within the scope permitted by law, including handicrafts, processing industries, retail trades, repair industries, service industry bureaus, etc. In this regard, business activities shall be carried out within the business scope approved by the market supervision and administration department.

3. Individually-owned businesses can have a trade name and enjoy the right of name.

Individually-owned businesses fully enjoy the right to operate independently within the scope of business prescribed by law and approved for registration in accordance with the law, and may, upon approval, set up a trade name, engrave a seal, and open an account in a bank in order to carry out normal business activities. The trade name of an individually-owned business enjoys the right to its name, and no one else may infringe upon it. In the course of business activities, an individually-owned business that does not have a trade name shall use the name of the business operator registered with the market supervision and administration department as the name of the business operator, and the name used by such business operator is actually different from the name of the natural person itself and has the meaning of the trade name.

3. On the principle of repayment of debts incurred by individual industrial and commercial households in the course of operation

1) If an individually-owned business is operated as an individual, the debts it bears are personal debts, and it shall bear unlimited liability for the debts with its personal property, which has nothing to do with the joint property of the husband and wife and the joint property of the family.

2) Where a family is a family unit, both its income and its liabilities are the common property of the family, and the debts incurred in the course of self-employment shall be subject to unlimited liability with all the family's property.

3) Where it is not possible to distinguish between individual and family operations in the course of operation, it shall be confirmed in accordance with the principle of benefiting the debtor, and shall be deemed to be a family operation and borne by family property.

According to the law, it can be known that individual industrial and commercial households are not taxpayers of enterprise income tax; The income needs to be calculated and paid for personal income tax, not corporate income tax. The above is to bring you the relevant knowledge about whether individual businesses need to pay corporate income tax, if you don't know anything or have other questions, you can consult a lawyer.

Summary. The differences between business income tax and individual income tax are: 1. Individual income tax refers to our personal income from wages and salaries, while individual production and operation income refers to the income tax levied by self-employed individuals.

2. Our personal income tax is declared according to wages and salaries every month, involving wages. 3. Our personal business income tax is actually declared for the operating profits of self-employed individuals, generally speaking, it is declared quarterly. Let's take a closer look.

The difference between Qingchun income tax and personal income tax before business is: 1. Individual income tax refers to our personal salary income from land salary, while individual production and operation income refers to the income tax levied by self-employed individuals. 2. Our personal income tax is declared according to wages and salaries every month, involving wages.

3. Our personal income tax is actually declared for the operating profits of self-employed individuals, generally speaking, it is a quarterly declaration. Let's take a closer look.

As we all know, in fact, our personal income tax includes the tax purpose of production and operation income. Moreover, our self-employed people do not have to pay corporate income tax. However, individual income tax is payable on production and operation income.

Personal income tax, which is the total amount of income we earn in each tax year minus costs. Then there are other expenses and the balance lost by He Liang is also subject to personal income tax. Resistant.

Moreover, our individual income tax rate is based on the production and business income of individual industrial and commercial households. Our personal income tax, in fact, is the tax paid by us personally in terms of wages and salaries.

However, the income tax on individual production and operation means that the income from the production and operation of individual industrial and commercial households is taxed.

1. Including differences: personal income tax includes production and operation income tax, and there are many coincidental items of individual income tax, such as our common wage and salary income tax, personal production and operation income and personal income tax, personal income tax on author's remuneration, and personal income tax on unexpected income. 2. The formula is different

Tax payable on production and business income of individual industrial and commercial households = (annual income - costs, expenses and losses) Applicable tax rate - quick deduction. 3. Different adaptation of laws and regulations: According to the provisions of the second paragraph of Article 8 of the Decision on Amending the Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China (Order No. 600), the production and business income of individual industrial and commercial households refers to:

Income obtained by individual industrial and commercial households engaged in the production and operation of industry, handicrafts, construction, transportation, commerce, catering, services, repair and other industries; Individuals have obtained licenses with the approval of relevant departments, and are engaged in school-running, medical treatment, consulting and other paid services. income obtained by other individuals engaged in individual industrial and commercial production and operation; The taxable income related to production and operation obtained by the above-mentioned individual industrial and commercial households and individuals. The above is the answer to the question of the difference between individual income tax and individual production and business income, I hope it will be helpful to you.

The business income of an individually-owned business shall be the taxable income based on the balance of the total income of each tax year after deducting costs, expenses and losses. A progressive tax rate of 5% to 35% for excess resistance is applied (the tax rate table is below).

Taxpayers who obtain business income shall calculate individual income tax on an annual basis, and the taxpayer shall submit a tax return to the tax authorities within 15 days after the end of the month or quarter, and pay the tax in advance; The final settlement shall be completed before March 31 of the following year in which the income is obtained.

Whether to declare the prepayment tax on a monthly basis or quarterly is determined by the local competent tax authority according to your actual situation.

The production and business income of individual industrial and commercial households shall be levied on an annual basis. A 5-level progressive tax rate on excess income is applied to business income. The minimum level of production and business income of individual industrial and commercial households that are subject to annual calculation and monthly prepayment of tax is 5%, and the highest level is 35%, a total of 5 levels.

Accounting entry method, debit: income tax expense; Credit: Tax Payable - Income Tax Payable.