Circular on Issues Relevant to the Revision of the Rates of Pre-tax Deductions from Individual Income Tax of Family Proprietorships, Wholly Individually-owned Enterprises and Partnerships
关于调整个体工商户个人独资企业和合伙企业个人所得税税前扣除标准有关问题的通知
The rate for the deduction of the expenses before individual income tax of the owners of family proprietorships and of investors in wholly individually-owned enterprises and partnerships is uniformly set at Rmb24,000 per year (Rmb2,000 per month).
(Issued by the Ministry of Finance and the State Administration of Taxation on June 3 2008.)
(财政部、国家税务总局于二零零八年六月三日公布。)
Cai Shui [2008] No.65
财税 [2008] 65号
Finance departments (bureaux) and local taxation bureaux of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, the Tibet, Ningxia and Qinghai Provincial (Autonomous Region) Offices of the State Administration of Taxation and the Finance Bureau of the Xingjiang Production and Construction Corp:
各省、自治区、直辖市、计划单列市财政厅（局）、地方税务局，西藏、宁夏、青海省（自治区）国家税务局，新疆生产建设兵团财务局：
Pursuant to the current Individual Income Tax Law, its Implementing Regulations and relevant policies, we hereby inform you as follows on issues relevant to the revision of the rates of pre-tax deductions from individual income tax of family proprietorships, wholly individually-owned enterprises and partnerships:
根据现行个人所得税法及其实施条例和相关政策规定，现将个体工商户、个人独资企业和合伙企业个人所得税税前扣除标准有关问题通知如下：
1. When levying in accordance with the law individual income tax on the production and operating income of owners of family proprietorships and of investors in wholly individually-owned enterprises and partnerships, the rate for the deduction of the expenses of the owners and investors themselves is uniformly set at Rmb24,000 per year (Rmb2,000 per month).
一、对个体工商户业主、个人独资企业和合伙企业投资者的生产经营所得依法计征个人所得税时，个体工商户业主、个人独资企业和合伙企业投资者本人的费用扣除标准统一确定为24000元/年(2000元/月)。
2. The expenditures on the actual reasonable wages and salaries paid by a sole industrial or commercial proprietorship, wholly individually-owned enterprise or partnership to its employees may be deducted in full before tax.
二、个体工商户、个人独资企业和合伙企业向其从业人员实际支付的合理的工资、薪金支出，允许在税前据实扣除。
3. The expenditures on labour union funds allocated and employee benefits and employee education funds incurred by a sole industrial or commercial proprietorship, wholly individually-owned enterprise or partnership falling within 2%, 14% and 2.5% respectively of its total payroll may be deducted in full.
三、个体工商户、个人独资企业和合伙企业拨缴的工会经费、发生的职工福利费、职工教育经费支出分别在工资薪金总额2%、14%、2.5%的标准内据实扣除。
4. The portion of the advertising expenses and business publicity expenses incurred in a tax year by a sole industrial or commercial proprietorship, wholly individually-owned enterprise or partnership not exceeding 15% of its sales (operating) revenue for the year may be deducted in full; any amount above 15% may be carried forward and deducted in subsequent tax years.
四、个体工商户、个人独资企业和合伙企业每一纳税年度发生的广告费和业务宣传费用不超过当年销售(营业)收入15%的部分，可据实扣除；超过部分，准予在以后纳税年度结转扣除。
5. The business entertainment expenditures incurred in a tax year by a sole industrial or commercial proprietorship, wholly individually-owned enterprise or partnership and directly related to its production and operations may be deducted at the rate of 60% of the amount incurred, but may not exceed 0.5% of its sales (operating) revenue for the year.
五、个体工商户、个人独资企业和合伙企业每一纳税年度发生的与其生产经营业务直接相关的业务招待费支出，按照发生额的60%扣除，但最高不得超过当年销售(营业)收入的5‰。
6. Article 1 above shall be effective as of March 1 2008 and Articles 2, 3, 4, and 5 above shall be effective as of January 1 2008.
六、上述第一条规定自2008年3月1日起执行，第二、三、四、五条规定自2008年1月1日起执行。
7. The first paragraph of Article 13 and Article 29 of the State Administration of Taxation, Circular on the Issuance of the «Measures for the Calculation of the Individual Income Tax of Family Proprietorships (Trial Implementation))»<MEASURES for Calculation the Individual Income Tax of Family Proprietorships (Trial Implementation)(Guo Shui Fa [1997] No.43) are revised in line with the foregoing provisions; and an Article 30 reading as follows, “The expenditures on labour union funds allocated and on employee benefits and employee education funds incurred by a sole industrial or commercial proprietorship falling within 2%, 14% and 2.5% respectively of its total payroll may be deducted in full.” shall be added and the sequence of the Articles shall be revised accordingly.
七、《国家税务总局关于印发<个体工商户个人所得税计税办法(试行)>的通知》(国税发[1997]43号)第十三条第一款、第二十九条根据上述规定作相应修改；增加一条作为第三十条：“个体工商户拨缴的工会经费、发生的职工福利费、职工教育经费支出分别在工资薪金总额2%、14%、2.5%的标准内据实扣除。”同时对条文的顺序作相应调整。
Items (1), (2), (5), (6) and (7) of Article 6 of Annex 1 to the Ministry of Finance and State Administration of Taxation, Circular on the Issuance of the «Provisions for the Levy of Individual Income Tax on the Investors in Wholly Individually-owned Enterprises and Partnerships)»(Cai Shui [2000] No.91) are revised in line with the foregoing provisions.
《财政部 国家税务总局关于印发<关于个人独资企业和合伙企业投资者征收个人所得税的规定>的通知》（财税[2000]91号）附件1第六条第（一）、（二）、（五）、（六）、（七）项根据上述规定作相应修改。
Implementation of the Ministry of Finance and State Administration of Taxation, Circular on Revising the Rates of the Expenses of Owners of Family Proprietorships and of Investors in Wholly Individually-owned Enterprises and Partnerships that are Deductible from Individual Income Tax (Cai Shui [2006] No.44) shall cease.
clp reference:3230/08.06.03prc reference:财税 [2008] 65号promulgated:2008-06-03《财政部 国家税务总局关于调整个体工商户业主 个人独资企业和合伙企业投资者个人所得税费用扣除标准的通知》（财税[2006]44号）停止执行。
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