How is the corporate income tax calculated for small-scale taxpayers?

When small-scale taxpayers sell goods or taxable services, a simple method is adopted to calculate the tax payable based on sales volume and collection rate, and input tax is not allowed to be deducted. The tax payment periods for VAT are 1 day, 3 days, 5 days, 10 days, 15 days, 1 month or 1 quarter. The specific tax payment period of a taxpayer shall be determined separately by the competent tax authorities based on the amount of tax payable by the taxpayer; if the taxpayer cannot pay tax according to a fixed period, the tax may be paid on a one-by-one basis.

The tax payable is calculated as:

Tax payable = sales × collection rate

Because small-scale taxpayers are selling goods or taxable services Generally, only ordinary invoices can be issued, and the sales revenue obtained is tax-included sales. Therefore, when calculating the tax payable, the tax-inclusive sales must be converted into tax-exclusive sales before the tax payable can be calculated.

If a small-scale taxpayer sells goods or taxable services using the combined pricing method of sales volume and taxable amount, the sales volume shall be calculated according to the following formula:

Sales volume = tax-inclusive sales volume /(1 Collection rate)

Collection rate

VAT adopts a simple collection method for small-scale taxpayers, and the tax rate applicable to small-scale taxpayers is called the collection rate.

Considering that small-scale taxpayers have small business scales and imperfect accounting, it is difficult to calculate tax according to the VAT rate and use the special VAT deduction for input tax. Therefore, the tax payable is calculated based on the sales volume and the collection rate. Suggestions for tax payment. Starting from July 1, 2014, the value-added tax collection rate for small-scale taxpayers will be adjusted to 3.

Small-scale taxpayers (except other individuals) who sell their used fixed assets are levied VAT at a reduced rate of 2%. Only ordinary invoices can be issued, and special value-added tax invoices are not allowed to be issued by tax authorities.

Extended information

Small-scale taxpayers refer to VAT taxpayers whose annual sales are below the prescribed standards and whose accounting is not sound and cannot submit relevant tax information as required.

The so-called imperfect accounting refers to the inability to correctly calculate the output tax, input tax and tax payable of value-added tax.

Reference: Baidu Encyclopedia-Small-scale taxpayers