News from CCTV: According to the website of the State Administration of Taxation, in order to facilitate taxpayers and grassroots tax departments to check the relevant policy responses, the State Administration of Taxation has issued a quick question to the public from January 2019 to July 2024. Instant answer After a comprehensive review and confirmation, a "Q&A Compilation of a Series of Tax and Fee Support Policies Since 2019" covering 8 categories, 34 topics, and 294 current valid responses has been compiled. Today, we will learn about the relevant questions and answers on the preferential income tax policies for individual industrial and commercial households.

[Question 1] Has the preferential policy of halving personal income tax for individual industrial and commercial households increased? What are the specific regulations?

Answer: In order to implement the decisions and arrangements of the Party Central Committee and the State Council and further support the development of individual industrial and commercial households, the Ministry of Finance and the State Administration of Taxation jointly issued the "Related Taxes and Fees on Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" "Policy Announcement" (No. 12, 2023), from January 1, 2023 to December 31, 2027, personal income tax will be halved for the annual taxable income of individual industrial and commercial households not exceeding 2 million yuan. Individual industrial and commercial households can enjoy this preferential policy in addition to other existing preferential personal income tax policies. The above-mentioned regulations increase the annual taxable income range for individual industrial and commercial households to halve personal income tax from no more than 1 million yuan to no more than 2 million yuan, further increasing the preferential intensity.

[Question 2] How to calculate the tax reduction and exemption amount for individual industrial and commercial households that enjoy the 50% reduction in personal income tax policy?

Answer: According to the "Announcement of the State Administration of Taxation on Matters Related to Further Implementing Preferential Personal Income Tax Policies to Support the Development of Individual Industrial and Commercial Households" (No. 12, 2023), individual industrial and commercial households enjoy a 50% reduction in personal income tax. The tax reduction amount of the policy = (the tax amount payable for the part of the taxable income from business income not exceeding 2 million yuan - the tax reduction amount of other policies × the part of taxable income from business income not exceeding 2 million yuan ÷ the amount of taxable income from business income) × 50 %. We have embedded this calculation rule into the electronic tax bureau information system. The tax authority provides taxpayers with pre-filling services for declaration forms and report forms. If qualified taxpayers accurately and truthfully fill in their business data, the system can automatically calculate Amount of tax relief.

[Question 3] Do individual industrial and commercial households need to go through registration procedures to enjoy the policy of halving personal income tax?

Answer: Individual industrial and commercial households can enjoy the 50% tax reduction policy when prepaying and finalizing personal income tax. There is no need to register to enjoy the policy. By filling in the personal income tax return and tax reduction and exemption matters report Table relevant columns, you can enjoy.

[Question 4] How do individual industrial and commercial households declare to enjoy the 50% reduction in personal income tax policy?

Answer: For individual industrial and commercial households that declare through the electronic tax bureau, the tax authorities will automatically provide them with pre-filling services for this policy in the declaration form and report form. For individual industrial and commercial households that implement simple declarations on a regular basis, the tax authorities will automatically transfer taxes based on the tax payable after reduction or exemption.

[Question 5] I am an individual industrial and commercial household that has been approved to collect personal income tax. Can I enjoy the 50% reduction in personal income tax policy?

Answer: You can enjoy it. According to the "Announcement of the State Administration of Taxation on Matters Concerning the Further Implementation of Preferential Policies to Support the Development of Individual Income Tax by Individual Industrial and Commercial Households" (No. 12, 2023), individual industrial and commercial households can enjoy a half-tax reduction regardless of whether they collect personal income tax through audit or verification. tax policy.

[Question 6] I am an individual business owner and I have prepaid tax on my business income this year. Can I still enjoy the 50% tax reduction policy?

Answer: In order to maximize the benefits of tax cuts, individual industrial and commercial households who have prepaid taxes on their business income in the first few months of this year can also enjoy tax benefits. The specific method is that the taxes that should be reduced in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households on Tax Policies" (2023 No. 12) have been paid before the date of the announcement. Yes, you can apply for a tax refund; you can also automatically deduct the tax for subsequent months. If the tax cannot be fully deducted in the current year, you can apply for a tax refund during the annual settlement.