Finance Xiao Chen
Hello, Tax Filing Xiao Wei, I am a sole proprietor. This year, I have business income from both Shanghai and other provinces. I would like to ask how to handle the annual settlement and payment in this situation?
First, individual business owners, investors of sole proprietorships, individual partners of partnerships, personal contractors and renters, and other individuals engaged in production and business activities must complete the annual settlement and payment with the tax authority in the location of business management before March 31 of the year following the income acquisition, and submit the “Personal Income Tax Business Income Tax Return (B Form)”;
Second, if the above-mentioned groups obtain business income from more than two locations within China, they must file the “Personal Income Tax Business Income Tax Return (C Form)” and other relevant materials by March 31 of the year following the income acquisition, after completing the annual settlement and payment separately, choosing one of the locations of business management to file the annual consolidated tax return.
Tax Filing Xiao Wei
Finance Xiao Chen
Where can I file this?
You don’t need to worry about this. The B Form can be processed at the tax service hall of the tax authority in the location of business management, or through the individual electronic tax bureau on the deduction end and the web end. As for the C Form, it can be filed at the tax service hall of the tax authority in the location of business management and the web end of the individual electronic tax bureau. Let’s take the web end of the individual electronic tax bureau as an example and operate it together!
Tax Filing Xiao Wei
1. Filing Process for the “Personal Income Tax Business Income Tax Return (B Form)”
1. Open the individual electronic tax bureau web end (URL: https://etax.chinatax.gov.cn), log in via the personal income tax APP scan code or password.
2. Click “I want to file tax – Tax declaration – Business income (B Form)”.
3. Select the reporting year as 2022, click “Confirm”.
4. Click the box for “Unified Social Credit Code of the Invested Unit”, select “Province (City Level) of the unit”, enter the “Unified Social Credit Code”, select the corresponding enterprise, and click “Confirm Add”.
5. Click “Next”.
6. Click the dropdown button, enter “Income Information” and “Cost Expenses” in order, and click “Next”.
7. Click the dropdown button, enter the tax adjustment increase/decrease amount.
8. Enter other pre-tax deduction items in order. It is particularly important to note that if you do not have comprehensive income, you can still report special deductions, additional special deductions, and other legally determined deductions when conducting the business income annual settlement and payment.
9. Confirm the declaration information, the system will automatically calculate the tax payable or refundable. After confirming that it is correct, click “Submit”.
2. Filing Process for the “Personal Income Tax Business Income Tax Return (C Form)”
1. Open the individual electronic tax bureau web end (URL: https://etax.chinatax.gov.cn), log in via the personal income tax APP scan code or password.
2. Click “I want to file tax”, select “Business Income (C Form)”.
Note: Taxpayers who are subject to bookkeeping taxation are required to submit an annual report (B Form), while those under fixed taxation are not required to submit an annual report (B Form).
3. Choose the “Reporting Year” as 2022, click “Confirm”.
4. Confirm the invested unit information, the system will automatically bring out the names, taxpayer identification numbers, production and business addresses, taxable income amounts, and tax amounts paid for all invested units. Select one as the “Consolidation Location” from the dropdown box, verify and confirm, then click “Next”.
5. Verify and adjust the taxable income, various deductions and expenses. The system will automatically calculate the tax payable or refundable.
It is particularly important to note that, the maximum deduction for investor expenses is 60,000 yuan per person per year. If you have previously deducted 60,000 yuan in investor expenses when filing the B Form for multiple invested units, you need to make an adjustment when filing the C Form.
6. After completing the filing, confirm that it is correct, then click “Submit Declaration”.
7. Once you see [Declaration Information Submitted Successfully and Saved], you can proceed with the tax payment or apply for a tax refund.
Tips: Both forms must be submitted before March 31, 2023~
Source: Shanghai Taxation