Individual Business Income Tax

Individual business owners in China, known as "个体户", are subject to a type of income tax called the "个体户生产经营所得税" (Individual Business Owner Production and Operating Income Tax). This tax is a form of direct taxation that is levied on business income earned by individual business owners. The tax rate is generally progressive and varies depending on the amount of income earned. Additionally, individual business owners are required to file annual tax returns and pay taxes on time to avoid penalties and fines. This tax is an important source of revenue for the Chinese government and helps to support public services and infrastructure.