The tax paid on annual income of 10 million yuan is 429,180 yuan.
Sales of goods are taxed at 4% of VAT, and provision of labor is taxed at 5% of sales tax.
City construction tax, education surcharge, while paying the sum of VAT and business tax.
Additionally, personal income tax is also paid at about 2 percent.
If the annual income in a month is less than 5,000 yuan, you can be exempted from VAT and business tax, as well as city construction tax and education surcharges.
For self-employed people, the tax department calculates according to certain standards, which means they will calculate the monthly taxable amount for self-employed people based on the area, location, square footage, equipment and so on.
If a self-employed business has an annual income of 10 million yuan, but is not a general taxpayer, it will have to pay a 5 percent business tax, then a 7 percent urban construction and maintenance tax (if the business location is in an urban area), and a 3 percent surcharge on education fees on the business tax.
The amount of annual taxable income tax = annual taxable income * tax rate - quick deduction. Annual taxable income = annual income - exemptions - special deductions (three insurance and one pension, etc.) - special additional deductions - other deductions determined by law.
What is the tax rate for self-employed businessmen?
Value-added tax rate for individual businessmen tax, general taxpayers applicable tax rate of 13%, 9%, 6%, respectively, small-scale taxpayers applicable levy rate of 3%. For individual income tax, a super progressive rate of five percent to thirty-five percent is applicable.
Individual industrial and commercial households that implement the checking of accounts shall calculate and declare the payment of individual income tax in accordance with the provisions of the Measures for the Taxation of Individual Industrial and Commercial Households' Individual Income Tax.
Individual industrial and commercial households include: (1) individual industrial and commercial households that have obtained business licenses for individual industrial and commercial households in accordance with the law and are engaged in production and business operation; (2) individuals approved by the relevant government departments who are engaged in paid service activities such as schooling, medical treatment and consulting; and (3) other individuals who are engaged in individual production and business operation.
Individual business owners are individual income taxpayers.
Policies and regulations: "Measures for Individual Income Tax Calculation for Individual Industrial and Commercial Households" (published by Decree No. 35 of the State Administration of Taxation, and amended by the Decision of the State Administration of Taxation on Amending Some of the Taxation Departmental Regulations of June 15, 2018)