Sole proprietorship and partnership are not subject to tax payment while filing profit-seeking enterprise income tax.
Minxiong Office, National Taxation Bureau of the Southern Area indicates that beginning from the taxable year 2018, a profit-seeking enterprise organized as a sole proprietorship or a partnership shall declare its profit-seeking enterprise annual income tax return and be exempt from computing and making a tax payment; the amount of the income of the profit-seeking enterprise shall be included in “Business Income” as defined in Category 1, Paragraph 1 of Article 14 of the Income Tax Act, and the consolidated income tax shall be levied on the sole proprietor and the partners.
Moreover, the office reminds taxpayers that such enterprises are supposed to honestly declare their income from profit-seeking. If there is any omission or under-reporting of taxable income, such enterprises will be charged a multiplier fine, according to the amount on the basis of assessed short-declared or under-declared income calculated at the profit-seeking enterprise income tax rate applicable in the current year.
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