Those who open online stores in Taobao, monthly sales of less than 100,000 yuan (including this number) of value-added tax small-scale taxpayers, exempt from value-added tax. But the personal income tax on business income is still payable.
According to Article 1 of the Circular on the Implementation of Preferential Tax Reduction and Exemption Policies for Small and Micro Enterprises, VAT is exempted for small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive).
Article 2 For small and micro-profit enterprises, the portion of annual taxable income not exceeding 1 million yuan shall be reduced by 25% of the taxable income and the enterprise income tax shall be paid at a rate of 20%; for the portion of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, the portion of taxable income shall be reduced by 50% of the taxable income and the enterprise income tax shall be paid at a rate of 20%.
The abovementioned small and micro-profit enterprises refer to enterprises engaged in industries not restricted or prohibited by the state, and meeting the three conditions of annual taxable income not exceeding 3 million yuan, the number of employees not exceeding 300, and the total assets not exceeding 50 million yuan. The number of employees includes the number of employees who have established labor relations with the enterprise and the number of labor dispatch workers accepted by the enterprise. The indicators of the number of employees and total assets shall be determined by the quarterly average value of the enterprise for the whole year. The specific formula is as follows:
Quarterly average = (beginning of the quarter + end of the quarter) ÷ 2
Quarterly average for the year = sum of the quarterly averages for the year ÷ 4
If an enterprise opens for business or terminates its business activities in the middle of the year, the actual period of its business operation will be taken as a tax year for the determination of the relevant indexes mentioned above.
Expanded Information:
Article 2 of the Law of the People's Republic of China on Individual Income Tax (P.R.C.I.T. Law), as follows Each individual's income shall be subject to individual income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor;
(3) Income from manuscripts;
(4) Income from royalties;
(5) Income from business operations;
(6) Income from interest, dividends and bonuses;
( (vii) income from property leasing;
(viii) income from property transfer;
(ix) incidental income.
Resident individuals who derive income from the first to the fourth items of the preceding paragraph (hereinafter referred to as consolidated income) shall calculate their individual income tax on a consolidated basis for the taxable year; non-resident individuals who derive income from the first to the fourth items of the preceding paragraph shall calculate their individual income tax on a monthly basis or on a sub-item basis. Taxpayers obtaining income from the fifth to ninth items of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.
State Administration of Taxation - Circular on the Implementation of Inclusive Tax Reduction and Exemption Policies for Small and Micro Enterprises