• Announcement of the State Taxation Administration on Matters Concerning Further Implementation of Preferential Individual Income Tax Policies for Supporting the Development of Individual Industrial and Commercial Households

• 国家税务总局关于进一步落实支持个体工商户发展个人所得税优惠政策有关事项的公告

• (Announcement No. 12 [2023] of the State Taxation Administration)
• （国家税务总局公告2023年第12号）

• For the purposes of implementing the Announcement of the Ministry of Finance and the State Taxation Administration on the Relevant Tax and Fee Policies for Further Supporting the Development of Micro and Small Enterprises and Individual Industrial and Commercial Households (No. 12 [2023], hereinafter referred to as the “Announcement No. 12”) and further supporting the development of individual industrial and commercial households, the relevant matters are hereby announced as follows:
• 为贯彻落实《财政部 税务总局关于进一步支持小微企业和个体工商户发展有关税费政策的公告》（2023年第12号，以下简称12号公告），进一步支持个体工商户发展，现就有关事项公告如下：

• I. The annual taxable income of an individual industrial and commercial household that is not more than 2 million yuan shall be subject to one-half reduced individual income tax. An individual industrial and commercial household may, on the basis of enjoying other preferential individual income tax policies currently in force, concurrently enjoy the preferential policy as prescribed in this article. All individual industrial and commercial households may enjoy the policy, regardless of the collection methods.
• 　　一、对个体工商户年应纳税所得额不超过200万元的部分，减半征收个人所得税。个体工商户在享受现行其他个人所得税优惠政策的基础上，可叠加享受本条优惠政策。个体工商户不区分征收方式，均可享受。

• II. An individual industrial and commercial household may enjoy the policy at the time of prepaying taxes, and its annual taxable income shall be determined temporarily based on the circumstances until the end of the current period for the filing of returns, and be calculated annually at the time of fling of its annual tax returns on a consolidated basis, with overpaid taxes refunded and the deficiency made up. Where an individual industrial and commercial household obtains business income from two or more sources, the annual taxable business incomes of the individual industrial and commercial household shall be consolidated at the time of filing of its annual tax returns on a consolidated basis, and the amounts of tax reductions and exemptions shall be recalculated, with overpaid taxes refunded and the deficiency made up.
• 　　二、个体工商户在预缴税款时即可享受，其年应纳税所得额暂按截至本期申报所属期末的情况进行判断，并在年度汇算清缴时按年计算、多退少补。若个体工商户从两处以上取得经营所得，需在办理年度汇总纳税申报时，合并个体工商户经营所得年应纳税所得额，重新计算减免税额，多退少补。

• III. An individual industrial and commercial household shall calculate the amount of tax reduction or exemption in the following method:
• 　　三、个体工商户按照以下方法计算减免税额：

• Amount of tax reduction or exemption = (taxable business income that is not more than 2 million yuan - amount of tax reduction or exemption under other policies × taxable business income that is not more than 2 million yuan ÷ taxable business income) × 50%
• 减免税额＝（经营所得应纳税所得额不超过200万元部分的应纳税额-其他政策减免税额×经营所得应纳税所得额不超过200万元部分÷经营所得应纳税所得额）×50%。

• IV. An individual industrial and commercial household needs to enter the amount of tax reduction or exemption calculated in the aforementioned method in the “Amount of Tax Reduction or Exemption” column in the corresponding Business Income Tax Return, and attach a Report for Individual Income Tax Reduction and Exemption Matters. For an individual industrial and commercial household that files a tax return through an electronic tax administration, the tax authority shall provide the services of pre-entry of amount of tax reduction or exemption under such preferential policy and pre-completion of the Report. For an individual industrial and commercial household which files tax returns in a simplified manner and makes regular tax payments in fixed amounts, the tax authority shall transfer the tax payments from which the amounts of tax reductions and exemptions have been deducted.
• 　　四、个体工商户需将按上述方法计算得出的减免税额填入对应经营所得纳税申报表“减免税额”栏次，并附报《个人所得税减免税事项报告表》。对于通过电子税务局申报的个体工商户，税务机关将提供该优惠政策减免税额和报告表的预填服务。实行简易申报的定期定额个体工商户，税务机关按照减免后的税额进行税款划缴。

• V. Where the taxes that shall be reduced in accordance with the Announcement No. 12 have been paid before the issuance of this Announcement, an application may be filed for tax refund, and such taxes may also be credited against the taxes payable in subsequent months automatically and the balance thereof in the current year may be refunded at the time of filing of tax returns on a consolidated basis; and where cancellation formalities have been undergone before the issuance of the Announcement No. 12, it is no longer allowed to enjoy the said tax polices retrospectively.
• 　　五、按12号公告应减征的税款，在本公告发布前已缴纳的，可申请退税；也可自动抵减以后月份的税款，当年抵减不完的在汇算清缴时办理退税；12号公告发布之日前已办理注销的，不再追溯享受。

• VI. The tax authorities at all levels shall conscientiously improve their political stance, fully understand the significance of tax policies to stabilizing the expectations of the market participants, boosting their confidence and making good arrangements for their investments and business operations, conscientiously and effectively conduct publicity and interpretation and provide high-quality and precise guidance, provide taxpayers with facilitative and efficient channels for enjoying policies, proactively respond to taxpayers' demands, and comprehensively and effectively advance the implementation of relevant work.
• 　　六、各级税务机关要切实提高政治站位，充分认识税收政策对于市场主体稳定预期、提振信心、安排好投资经营的重要意义，认真做好宣传解读、做优精准辅导，为纳税人提供便捷、高效的政策享受通道，积极回应纳税人诉求，全面抓好推进落实。

• VII. This Announcement shall be in force from January 1, 2023 through December 31, 2027, upon which the Announcement of the State Taxation Administration on Matters Concerning the Implementation of Preferential Individual Income Tax Policies for Supporting the Development of Individual Industrial and Commercial Households (No. 5 [2023]) shall be repealed.
• 　　七、本公告自2023年1月1日起施行，2027年12月31日终止执行。《国家税务总局关于落实支持个体工商户发展个人所得税优惠政策有关事项的公告》（2023年第5号）同时废止。

• 特此公告。

• State Taxation Administration
• 国家税务总局

• August 2, 2023
• 2023年8月2日