Guangdong will lower the individual tax rate for self-employed individuals starting from November 1, benefiting 3.47 million individual merchants in the province

Guangdong will lower the individual tax rate for self-employed individuals starting from November 1, benefiting 3.47 million individual merchants across the province (Reported by Yang Qiwei, Special Correspondent of the Alberta Times in Guangzhou) On November 1, Guangzhou…

(Reported by Yang Qiwei, Special Correspondent of the Alberta Times in Guangzhou) On November 1, the "Regulations on Individual Industrial and Commercial Households" issued by the Guangdong Provincial Local Taxation Bureau were officially implemented. This is a major event in the development of China's individual and private economy. The implementation of the "Regulations" will comprehensively lower the individual tax levy rate on production and operation income for individual industrial and commercial households that are assessed to be levied personal income tax, greatly lowering the threshold for individual industrial and commercial households, and relaxing identity restrictions, number of people, business scope, and expenses. The relevant person in charge of the Guangdong Provincial Administration for Industry and Commerce stated that the implementation of the new "Regulations" will provide a more relaxed legal environment and policy environment for Guangdong's 3.47 million individual industrial and commercial households, and "greatly relax" the individual economy. Compared with the "Interim Regulations", the specific changes in the new "Regulations" are as follows: 1. The identity restrictions for applications are cancelled. In the past, the "Interim Regulations" stipulated that the scope of persons applying to establish individual industrial and commercial households was "urban unemployed persons with business capabilities, rural villagers and other persons permitted by national policies". The new "Regulations" have been expanded to "citizens with business capabilities". This also means that many people with business capabilities can work part-time as individual industrial and commercial households in addition to their original jobs, unless prohibited by their workplace. This can encourage more people in society to start their own businesses and promote the development of the individual economy. 2. There is no limit to the number of employees. In the past, the "Interim Regulations" stipulated that individual industrial and commercial households could hire one or two helpers according to their business conditions; skilled individual industrial and commercial households could hire three or five apprentices. The maximum number of employees in a self-employed business household is 8. The new Regulations no longer limit the number of employees in individual industrial and commercial households. In practice, the restrictions on the number of people have become ineffective. This is especially obvious in the hotel industry and entertainment industry, where the number of employees has exceeded several hundred, so it is inevitable to abolish the limit on the number of people. 3. Broaden business scope. In the past, the "Interim Regulations" stipulated that individual industrial and commercial households could only engage in industry, handicrafts, construction, transportation, commerce, catering, service, repair and other industries within the scope permitted by national laws and policies. The new "Regulations" stipulate that as long as the industry is not prohibited by laws and policies, you can enter. In contrast, the new "Regulations" have greatly broadened the business scope of individual industrial and commercial households. 4. Business licenses no longer have an expiration date. The new "Regulations" cancel the provisions in the "Interim Regulations" regarding "If an individual industrial and commercial household ceases business on its own for more than six months, the business license shall be confiscated by the original industrial and commercial administrative authority of registration" and the provision that "individual industrial and commercial households operating in other places need to file with the original registration authority and apply for a temporary business license from the registration authority in another place". The business license has also been changed from the previous four-year validity period to long-term validity, so there is no need to renew the business license every four years, but it still needs to be verified every year according to regulations. In addition, if an individual industrial and commercial household operates in a different place, the operator can directly register the establishment of the individual industrial and commercial household at the registration authority at the place of business. At the same time, management fees for individual industrial and commercial households were also cancelled. 5. The registered capital will no longer be used as a registration matter. The "Regulations" have relaxed the registration matters for individual industrial and commercial households, including only the name and residence of the operator, the form of composition, the scope of business, and the business location, and the registered capital is no longer a registration matter. The relevant person in charge of the Provincial Administration for Industry and Commerce stated that after the newly issued "Individual Industrial and Commercial Household Regulations" are implemented, the new version of the "Individual Industrial and Commercial Household Business License" will be used, but the old version of the "Individual Industrial and Commercial Household Business License" will not be replaced in a centralized manner. That is, for individual industrial and commercial households that have been registered before October 31, 2011, if the validity period of the original business license expires, the individual industrial and commercial household operators should promptly apply to the registration authority for a new version of the "Individual Industrial and Commercial Household Business License"; if the original business license has not expired, the individual industrial and commercial household operators can voluntarily renew the new version of the "Individual Industrial and Commercial Household Business License", or apply for a new version of the "Individual Industrial and Commercial Household Business License" when going through procedures such as change registration and annual license verification. The charging standards for renewing business licenses shall be in accordance with relevant national regulations.