Where a taxpayer derives income from business operation, the taxable income shall be the balance of the total income of each taxable year minus costs, expenses and losses, and the individual income tax shall be calculated on annual basis. Taxpayers shall fill in the Tax Return for Individual Income Tax on Income from Business Operation (Form B) and other relevant materials before March 31 of the following year when the income is derived and make final settlement and payment to the competent tax authority in the place where the operation management is located.

In case that enterprises merge, split and terminate in the middle of the year, investors of sole proprietorship enterprises, individual partners of partnership enterprises and contracting and leasing operators shall, apply to the competent tax authorities for settlement of individual income tax of the current term within 60 days from the date of cessation of production and operation.

Two copies of "Tax Return for Individual Income Tax on Income from Business Operation (Form B)"

1. Where a taxpayer has no aggregate income and needs to enjoy special additional deductions, one copy of Information Form for Special Additional Deductions of Individual Income Tax shall be provided.

2. In case there is individual income tax reduction and exemption for taxpayers, one copy of "Reporting Form for Matters of Individual Income Tax Reduction and Exemption" shall be provided.

3. Where there are other deductions identified according to laws, one copy of relevant deduction materials such as the "Detailed List of Pre-tax Deductions for Commercial Health Insurance" and the Detailed List of Pre-tax Deductions for Individual Tax-deferred Commercial Endowment Insurance shall be provided.

1. Process time and Place

Please see the tax service guide for details of the processing time and address of the tax service halls in each district (region).

2. Processing time limit

Immediate completion of processing

3. Processing fee

Free of charge

1. Taxpayers shall be responsible for the authenticity and legality of the materials submitted.

2. The forms can be found and downloaded in the "download center" section on the website of the provincial tax administration (autonomous regions, municipalities directly under the central government and municipalities with independent planning) or one can go and get them in tax service halls.

3. The tax authorities provide "one-visit at most" service. Taxpayers only need to visit the tax authorities once at most on the precondition that the materials are complete and meet the legal conditions for acceptance.

4. Electronic signatures used by taxpayers that meet the conditions stipulated in the regulation on electronic signature have the same legal effect as handwritten signatures or seals.

5. Where a taxpayer fails to file tax declaration and submit tax materials within the prescribed period, the result of tax credit evaluation will be affected, and the taxpayer shall assume corresponding legal liabilities in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection.

6. Individual business owners, sole proprietorship enterprise investors, individual partners of partnership enterprises, individual contracting and leasing operators, and other individuals engaged in production and business operation activities shall file advance tax payment declaration and apply for final settlement and payment if they derive income from business operation. Income from business operation shall include the following circumstances:

A. income from production and business operation of individual businesses, and income from production and business operation of sole proprietorship enterprise investors and partners of partnership enterprises from sole proprietorship enterprises and partnership enterprises

B. income from individual engagement in activities of running schools, medical services, consultations and other paid services according to laws;

C. income from individual engagement in contracting operation, leasing operation, subcontracting and subletting of enterprises and public institutions;

D. income from other production and business operation activities.

7. Where taxable income cannot be calculated correctly due to the failure of the taxpayer to provide complete and accurate tax payment materials for the production and operation activities, the taxable income or taxable amount shall be verified and determined by the competent tax authority.

8. When applying for settlement and payment, if there are multiple natural person partners in the partnership enterprise, the "Tax Return for Individual Income Tax on Income from Business Operation (Form B)" shall be filled in and submitted respectively by the partners.

9. Where an individual derives income from business operation and has no aggregate income, when calculating of tax payable of each taxable year, CNY 60,000 of expenses, special deductions, special additional deductions and other deductions confirmed according to laws shall be deducted. The special additional deductions will be deducted when applying for final settlement and payment.

10. Individual business owners, investors of sole proprietorship enterprises, individual partners of partnership enterprises, individual contracting and leasing operators and other individuals engaged in production and business operation activities who derive income from business operation from more than two sources within China, after completing the annual settlement and payment respectively, shall fill in the "Tax Return for Individual Income Tax on Income from Business Operation (Form C)" and other relevant materials before March 31 of the following year when the income is derived, and choose to apply for the annual consolidated tax declaration to the competent tax authority where one of the places of business management is located.

11. Taxpayers who derive business income in the year of household registration cancellation shall apply for final settlement and payment of tax for the income from business operation of the current year and submit the "Tax Return for Individual Income Tax on Income from Business Operation (Form B)" before the canceling. Those who derive income from business operation from two or more sources shall also submit the "Tax Return for Individual Income Tax on Income from Business Operation (Form C)". If the final settlement and payment of tax for income from business operation of the previous year is not completed, it shall be handled together with the tax declaration for cancellation of household registration.

12. Taxpayers with unpaid or underpaid taxes shall settle the outstanding or unpaid taxes before canceling their household registration. If taxpayers pay taxes in installments and do not finish all the payments, they shall settle the unpaid taxes before canceling their household registration.

13. The materials related to the tax benefits enjoyed by the taxpayer according to the law shall be retained for future reference or submission according to relevant regulations.

14. Taxpayers who have no payable tax during the taxable period shall also file the tax declaration according to relevant regulations.