December 31, 2014, the State Administration of Taxation announced the order No.35 to update “Individual industrial and commercial households’ personal income tax calculation measures”.
The new “measures” borrows from the corporate income tax law about rules of the revenue recognition and cost accumulation. At the mean time, in order to implement and meet the requirements of the approval system and the reform system which are set by the government, the new “measure” has already cancelled the original examination and the approval of tax measurement. This benefits the individual proprietorship businesses and the partnership businesses by reducing the amount of income tax. On the other hand, this will create a fair competitive tax policy environment for the market.
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