What is the 2024 New Deal for Self-employed Approved Collection?In order to promote the prosperity and development of the individual economy, China is fully supporting individual industrial and commercial households, providing them with encouragement, support and guidance. This initiative is like a warm sunshine, illuminating the development path of individual industrial and commercial households, and like sweet rain and dew, nourishing their entrepreneurial dreams. In terms of taxation, a lot of preferential policies have also been given to support individual industrial and commercial households.
1.How to calculate the tax on self-employed in 2024?
Individual income tax calculation method for individual industrial and commercial households: for implementationFlat rate levyThe individual income tax is calculated based on the approved monthly operating income (settlement amount) multiplied by the applicable levy rate. And practiceAudit collectionIndividually-owned businesses are required to pay taxes in advance on a monthly basis, and make final settlements after the end of the year.
The individual income tax on the business income of individual industrial and commercial households is subject to a five-level excess cumulative tax rate, with the tax rate ranging from 5% to 35%. The specific tax rate is determined according to the taxable income of individual industrial and commercial households. According to the formula for calculating the taxable income of individual industrial and commercial households, the tax payable can be obtained as:Tax payable =Annual taxable income * applicable tax rate - quick deduction= (Total Annual Income - Costs, Expenses and Losses) * Applicable Tax Rate - Quick Deductions.
For example: Company A is a commercial enterprise (sole proprietorship), and its operating income in December 2023 is 150,000 yuan, and the costs and expenses allowed to be deducted are 90,000 yuan (excluding the owner's salary). The cumulative taxable income from January to November is 50,000 yuan (without deducting the deduction standard for owner's expenses), and the cumulative individual income tax has been paid from January to November is 5,600 yuan. In addition to business income, the owners of individual industrial and commercial households have no other income and enjoy a special deduction of 24,000 yuan for supporting the elderly. Calculate the individual income tax refund amount that should be applied for in the 2023 annual final settlement of individual industrial and commercial households. Annual taxable income = 150,000 yuan - 90,000 yuan + 50,000 yuan - 60,000 yuan - 24,000 yuan = 26,000 yuan. Individual income tax payable for the whole year = 26,000 yuan * 5% = 1,300 yuan The amount of individual income tax refund to be applied for in 2023 = 5,600 yuan - 1,300 yuan = 4,300 yuan.
2.What tax policies do self-employed people enjoy in 2024?
According to the announcement of the State Administration of Taxation on the preferential income tax policies for small and micro enterprises and individual industrial and commercial households, forThe part of the annual taxable income of individual industrial and commercial households not exceeding 1 million yuanOn the basis of the current preferential policiesPersonal income tax is halved. This preferential policy is implemented until December 31, 2024, so individual industrial and commercial households will also enjoy this preferential tax policy in 2024.
The State Administration of Taxation announced fromFrom January 1, 2023 to December 31, 2027, for individual businesses yearsThe part of the taxable income not exceeding 2 million yuan shall be reduced by half and levied individual income tax。In addition, on the basis of enjoying other existing preferential individual income tax policies, individual industrial and commercial households can also enjoy this preferential policy in addition. This policy is implemented on the basis of other existing preferential individual income tax policies, that is, individual industrial and commercial households can continue to enjoy other preferential individual income tax policies while enjoying this preferential policy. This reflects the support and encouragement for the development of small and micro enterprises and individual industrial and commercial households.
3.The self-employed are approved to levy the 2024 New Deal
How to verify and collect self-employed?The in-charge taxation authorities shall verify and calculate the tax payable on the basis of the self-declaration of regular quota households, with reference to the results of typical surveys, and with reference to the production and operation of taxpayers of the same scale and region in the same industry or similar industries. After applying for self-employed tax verification, it is no longer necessary to implement the excess progressive tax rate to calculate personal business income, of course, self-employed individuals also need to take the initiative to declare when the verification and collection exceeds the approved tax rate.
The 2024 New Deal for the Approved Collection of Self-employed Households has adjusted the preferential tax policies for individual industrial and commercial households. In the past, there were relatively few preferential tax policies for individual industrial and commercial households, and the incentives were not large. Now, China will increase tax incentives for individual industrial and commercial households, especially for some emerging industries and innovative and entrepreneurial individual industrial and commercial households, will be given more preferential tax policy support. This new preferential tax policy will help stimulate the enthusiasm of individual industrial and commercial households for innovation and entrepreneurship and promote their rapid development.