China self-employed tax calculator (个体工商户)

How 个体工商户 (individual business) in China is calculated

Business income (经营所得) is the year’s revenue less costs, expenses and losses. An owner with no salary deducts **60,000 yuan** plus their own social insurance, and the rest is taxed at **5%, 10%, 20%, 30% and 35%** on bands that break at 30,000, 90,000, 300,000 and 500,000 yuan — a different, steeper table from the one for wages.

**The halving.** From 1 January 2023 to 31 December 2027 an individual business pays only half the tax on taxable income up to **2 million yuan**. The relief is half of the tax computed on the first 2 million: the State Taxation Administration’s example 3 takes 2,400,000 yuan of taxable income and 634,500 yuan of tax on the first 2 million, so with no other relief the halving is 317,250 (the example also nets off a 6,000 disability relief pro rata, giving 314,750). Below 2 million the whole bill simply halves — 140,000 yuan taxable is 17,500 of tax, so 8,750 to pay.

**Social insurance in your own name** (Beijing, from July 2026, registered as an individual with a public HR service centre): pension 20% and unemployment 1% on a base you choose between 7,270 and 36,348 yuan a month, plus a flat 593.68 yuan a month of medical insurance. At the lowest base that is **25,444.56 yuan** a year, and it is deductible. With salary income as well, the 60,000 and your insurance come off the salary instead (implementing regulations art. 15). Deemed-profit (核定) assessment and the children and parents deductions are not modelled. Estimate, not tax advice.