How is the corporate income tax calculated for self employed individuals?

The business income tax calculation method for self-employed individuals is as follows:

1. The production and operation income of individual industrial and commercial households shall be the taxable income based on the total income of each tax year, after deducting costs, expenses and losses;

2. The deduction standard for the owner's expenses is uniformly determined to be 24,000 yuan per year;

3. The standard of deduction of employees' wages shall be determined by the tax authorities of provinces, autonomous regions and municipalities directly under the Central Government;

4. If there is a legal proof of the interest expense of the loan during the production and operation period, the part within the amount calculated not higher than the loan interest rate of the same type of financial institution shall be allowed to be deducted;

5. Tax payable = taxable income multiplied by the applicable tax rate - quick deduction = (total annual income - costs, expenses and losses) multiplied by the applicable tax rate - quick deduction;

6. It is necessary to distinguish the division between the income from production and operation of individual industrial and commercial households and the income from other aspects obtained;

7. The profits recovered from the joint venture shall be subject to individual income tax according to the income items of "interest, dividends and bonuses";

8. The income from author's remuneration obtained by Wang, a self-employed business, from writing books while producing and operating shall be subject to individual income tax according to the author's remuneration income.

Measures for the Calculation of Individual Income Tax for Individually-owned Industrial and Commercial Households

Article 5. The calculation of the taxable income of individual industrial and commercial households is based on the principle of accrual accounting, which belongs to the income and expenses of the current period, regardless of whether the payment is received or paid, and is regarded as the income and expenses of the current period; Income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not considered current income and expenses. Except as otherwise provided by these Measures and the Ministry of Finance and the State Administration of Taxation.

1. Regardless of whether it is a self-employed person or a company, the payment of value-added tax (or business tax), urban construction tax, education surcharge, local education surcharge and stamp duty is the same standard. Self-employed individuals can also be recognized as general taxpayers.

2. Self-employed individuals do not pay "enterprise income tax", but pay "individual income tax on the production and operation income of individual industrial and commercial households".

3. Whether it is a self-employed person or a company, the calculation standard for income is the same - the total income minus costs, expenses, taxes, and losses. The difference is the income payable for individual income tax or the income payable for enterprise income tax.

4. The enterprise income tax rate is 25% (20% for small and low-profit enterprises), and the individual income tax of individual industrial and commercial households implements a five-level excess progressive tax rate.

Series. Annual taxable income.

Tax rate (%) Quick calculation deduction.

not more than 5,000 yuan.

The part that exceeds 5,000-10,000 yuan.

The part that exceeds 10,000-30,000 yuan.

The part that exceeds 30,000-50,000 yuan.

The part over 50,000 yuan.

5. When the annual income is less than 67,500 yuan, it is cost-effective for self-employed; When the income is 67,500 yuan, the self-employed person is the same as the company; The income is more than 67,500 yuan, and the company is cost-effective.

Therefore, when the annual income is expected to exceed 67,500 yuan, the company should be registered.

Summary. Kiss! Hello! Tax payable for self-employment = taxable income Applicable tax rate - quick deduction;

How to calculate income tax for self-employed entrepreneurs.

Kiss! Hello! Tax payable for self-employment = taxable income Applicable tax rate - quick deduction;

Individual income tax shall be levied on the production and operation income of sole proprietorship enterprises and partnership enterprises that are subject to the audit and taxation measures, and shall be subject to individual income tax according to the tax item of "production and business income of individual industrial and commercial households". The calculation method of self-employed income tax is as follows: tax payable for self-employment = taxable income applicable tax rate - quick deduction; Taxable income = total income - costs, expenses and losses - tax threshold; Where:

The income of individual industrial and commercial households includes: the income obtained by self-employed individuals engaged in production and operation and activities related to production and operation. Pre-tax deductions for costs, expenses and losses include:

The direct and indirect expenses incurred by self-employed individuals engaged in production and operation, as well as sales expenses, management expenses, financial expenses and various non-operating expenses. It should be noted that if individual industrial and commercial households and individuals engaged in production and operation obtain other taxable income unrelated to production and business activities, they shall calculate and levy individual income tax in accordance with the relevant regulations, and if the dividend income obtained by individual industrial and commercial households from foreign investment shall be taxed according to the tax item of "interest, dividends and bonus income".

What is the applicable tax rate.

What is the standard for quick deductions?

The income tax rate for individual businesses is 5%.

The quick deduction is the difference between the amount of tax calculated at the full progressive rate and the amount of tax calculated at the excess progressive rate.

For example, if there is 200,000, it will be 20*5% - a quick deduction.

Are there any examples, let me give you an example.

Good. 1. Levy 3% value-added tax on small taxpayers; 2. Urban maintenance and construction tax is generally 7% in the city, 5% outside the county, and 1% outside the county; 3. Individual income tax. Individual income tax is calculated on the basis of the balance after deducting the production and operation income and costs of the self-employed person in the current year.

The tax rate is usually around 2%. 4. At the same time, the urban construction tax and education fee surcharge shall be paid according to the sum of the value-added tax and business tax paid.

Individually-owned businesses do not need to pay corporate income tax, but individual income tax. The taxable income from production and business income is the balance of the total income collected in each tax year, after deducting costs, expenses, taxes, losses, other expenses and losses of previous years that are allowed to be made up.

Article 2 of the Measures for the Calculation of Individual Income Tax of Individual Industrial and Commercial Households, which implements audit and collection, shall calculate and declare and pay individual income tax in accordance with the provisions of these Measures. Article 7 of the Measures for the Calculation of Individual Income Tax on Individual Industrial and Commercial Households stipulates that the income from production and operation of individual industrial and commercial households shall be the taxable income after deducting costs, expenses, taxes, losses, other expenses and losses allowed to be made up in previous years.

Legal analysisIndividually-owned business is the legal manifestation of the individual industrial and commercial economy, which has the following characteristics:1A sole proprietorship is a natural person or family engaged in industrial and commercial operations.

Natural persons who engage in industrial and commercial operations as individuals or families are individually-owned businesses. According to the relevant policies of the law, the main people who can apply for the operation of individual industrial and commercial households are urban unemployed youths, idle people and rural villagers. Cadres of state organs and employees of enterprises and institutions may not apply to engage in individual industrial and commercial operations.

2.Natural persons engaged in individual industrial and commercial operations must be approved and registered in accordance with law. The registration authority of individual industrial and commercial households is the administrative organ for industry and commerce at or above the county level.

Individually-owned businesses can only start operating after they have been approved and registered and have obtained a business license. Individually-owned businesses should also go through registration formalities if they transfer their business, merge, change their registration items or close down their business. 3.

Individually-owned businesses can only operate industries that are allowed by law and policy. The formula for calculating the business income tax of self-employed individuals is as follows: total income of taxable income tax year - costs, expenses and losses - 5000 * actual business month - five insurances and one housing fund borne by the individual - other deductions of tax amount tax income Applicable tax rate - quick deduction.

The individual income tax rate of the business income from the destruction of distressed property during the lifetime of individual industrial and commercial households shall be subject to the progressive tax rate table of 5% to 35%.

Legal basisMeasures of the People's Republic of China for the Administration of the Collection of Surplus Taxes》 Article 3 The initiation and suspension of tax collection, tax reduction, tax exemption, tax refund and tax payment shall be implemented in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***. No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax collection, suspending, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.