Invoice issuance for individuals subject to self-inspection! Tax bureau reminds: new rules for invoicing and tax filing from 2025

Individuals previously went to the tax bureau to issue invoices on their behalf, but because they did not file individual income tax themselves, they are now required by the tax bureau to conduct self-inspection! After an individual issues an invoice at the tax bureau, where should individual income tax be filed? The note at the bottom right of the issued invoice states that the withholding agent withholds and remits individual income tax—does that mean the payer withholds the individual income tax? What if there is no note?

What taxes are paid when an individual issues an invoice on their behalf? What preferential policies are available in 2025? Let's take a look!

(1) Invoice issuance for individuals required by the tax bureau to conduct self-inspection

Tax Matter Notice of the Second Tax Office of the *** District Tax Bureau of the State Taxation Administration

***Shui Er Suo Tong [2024] No. 584

Chen: 3***9

Reason:In prior years, there were cases where invoices issued on behalf of individuals at the front desk were not self-declared for labor remuneration income, business income, or other income

Basis:Announcement of the State Taxation Administration on Issues Concerning Self-Filing of Individual Income Tax (Announcement No. 62 of 2018 of the State Taxation Administration)

Notification content: According to system inquiry, in 2021 you had front-desk issued invoices without self-declaring labor remuneration income, business income, or other income. According to Article 1 of the Announcement of the State Taxation Administration on Issues Concerning Individual Income Tax Self-Filing (State Taxation Administration Announcement No. 62 of 2018): taxpayers who need to handle annual comprehensive income reconciliation，Tax filing should be made with the competent tax authority at the place of employment or employment unit between March 1 and June 30 of the year following the year in which the income is obtained, and the Individual Income Tax Annual Self-Filing Return should be submitted.

Where a taxpayer has two or more employment or employment-receiving units, it shall choose to file the tax return with the competent tax authority at the place of one of the employment or employment-receiving units; where a taxpayer has no employment or employment-receiving unit, it shall file the tax return with the competent tax authority at the place of household registration or habitual residence.

Article 2 stipulates: For taxpayers earning business income, individual income tax is calculated on an annual basis. Taxpayers shall, within 15 days after the end of each month or quarter, file a prepayment tax return with the competent tax authority at the place where the business is operated and managed, and submit the Individual Income Tax Business Income Tax Return (Form A).

Before March 31 of the year following the year in which the income is obtained, handle the annual comprehensive settlement with the competent tax authority at the place of business and management, and submit the "Individual Income Tax Business Income Tax Filing Return (Form B)"; if business income is obtained from two or more places, choose one place of business and management to handle the annual consolidated filing with the competent tax authority, and submit the "Individual Income Tax Business Income Tax Filing Return (Form C)."

Please conduct a self-inspection within 15 days and file truthfully.

(II) What taxes must be paid for invoice issuance for individuals? What tax benefits can be enjoyed?

1. VAT

▪ Tax incentives

(1) For the taxable sales revenue of small-scale VAT taxpayers subject to the 3% levy rate, VAT shall be levied at a reduced rate of 1%.

(2) Small-scale taxpayers that have not completed tax registration or temporary tax registration are exempt from VAT if their sales amount per transaction (per day) does not reach 500 yuan.

(3) Vegetables sold by taxpayers engaged in vegetable wholesale and retail are exempt from VAT.

(4) Some fresh and live meat and egg products sold by taxpayers engaged in agricultural product wholesale and retail are exempt from VAT.

(5) Other VAT exemption items, see the "Reduction and Exemption Tax Policy Code Catalog", address: State Taxation Administration portal website first item / Taxpayer Services / Reduction and Exemption Tax Policy Code Catalog.

２. Additional taxes and fees

▪ Tax incentives

(1) FromJanuary 1, 2023 to December 31, 2027, halving the collection of resource tax (excluding water resource tax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding securities transaction stamp duty), farmland occupation tax, education surcharges, and local education surcharges for small-scale VAT taxpayers, small low-profit enterprises, and individual industrial and commercial households.

(2) Taxpayers with monthly sales or turnover not exceeding 100,000 yuan (quarterly sales or turnover not exceeding 300,000 yuan for quarterly taxpayers) are exempt from education surcharges, local education surcharges, and water conservancy construction funds.

3. Individual income tax

▪ For individuals engaged in business income

The collection situation is greatly affected by region and industry, usually first according toInvoicing sales amount × taxable income rate calculates the current month's taxable income amount，Then calculate the individual income tax amount according to the progressive tax rate for business income.

▪ For individuals obtaining labor remuneration income, author's remuneration income, and royalty income

When tax authorities issue invoices on their behalf,No longer levy individual income tax payable on income, and the withholding agent shall perform withholding and prepayment obligations in accordance with tax law.，And handling the full withholding filing for individual income tax for all employees.

Special attention

According to the requirements of the Announcement of the State Taxation Administration on Matters Concerning the Implementation of Income Tax Preferential Policies Supporting the Development of Small and Low-profit Enterprises and Individual Industrial and Commercial Households (State Taxation Administration Announcement No. 8 of 2021),"When individuals issue VAT invoices for the goods transport industry on their own, individual income tax is no longer collected in advance"，The individual income tax payable shall be declared and paid by the applicant for invoice issuance in accordance with the law.

[Case Analysis]

Professor Zhang provides business-finance-tax consulting to the company and receives a labor service fee of 10,100 yuan (tax included), with the invoice issued by the tax bureau on his behalf. Assume the applicable urban construction tax rate is 7%.

Q: How much tax does Professor Zhang need to pay for issuing this labor service fee invoice on behalf of himself this time?

VAT: 10100/(1+1%)*1%=100 yuan

Urban construction tax: 100*7%*50%=3.5 yuan

Education surcharge and local education surcharge: exempt, basis: Cai Shui [2016] No. 12

Stamp duty: finance and tax consulting contracts are not subject to stamp duty.

Technical consulting requires stamp tax payment, but accounting and tax consulting does not fall within the scope of technical consulting.

Individual income tax: 10100/(1+1%)*(1-20%)*20%=1600 yuan

When an individual issues an invoice on their behalf, the individual income tax paid is generally withheld and remitted by the payer as "income from remuneration for personal services."

Calculation method:

Tax payable = (revenue - deduction) * applicable tax rate table - quick calculation deduction

Deduction: when withholding and prepaying tax, where each income from remuneration for labor services does not exceed 4,000 yuan, the deduction is calculated at 800 yuan; where each income exceeds 4,000 yuan, the deduction is calculated at 20 percent of the income.

(3) Invoice issuance for individuals for fully digitalized e-invoices can still be done this way!

I. Use the tax APP

▪ Operating steps (taking Shanghai as an example)

1. Download the "Shanghai Tax" APP on your phone.　　

2. After switching to personal business, log in to the APP (note: first-time use requires user registration).

3. Click "Tax Handling" - "Invoice Use" - "Fully Digitalized E-Invoice Issuance for Individuals."

4. After entering the fully digitalized e-invoice issuance-for-others interface, click Apply for Issuance for Others (to query historical issuance-for-others records, click Query Historical Issuance-for-Others Records below).

5. Perform face-scanning certification.

6. Click "Add Buyer Information."

7. Select the purchaser (if issuing to this purchaser for the first time, you need to first click "Add Purchaser" below. If the purchaser is an individual, you need to check the box before "Whether to issue an invoice to an individual". If the purchaser is an enterprise, you can enter the purchaser name and click the search icon on the right, and the enterprise's basic information will be automatically attached, or enter the enterprise tax number to automatically bring out the enterprise's basic information. If the attached enterprise basic information is incorrect, you can correct it according to the specific information provided by the other party).

8. After completing the addition of purchaser information, return to the application information filling interface and click "Add Item Information".

9. After entering the item name, click search; the system automatically matches the most suitable commodity code; after selecting, click confirm.

10. The page returns to the project information form. After filling in the relevant information (the amount is a required field), the system automatically calculates the relevant taxes and fees.

11. After adding the project information, return to the application information filling page, and the purchaser information and invoicing amount will be displayed on the page (the following amount is only a test case). After you confirm the information is correct, you can select the corresponding "place where the taxable act occurs" according to the actual situation.

12. After filling in the place where the taxable act occurs, return to the application information filling page. If there is relevant remark information, fill it in the remark column and then click Next. If there is no remark information to fill in, you can directly click Next until payment is completed and the invoice is successfully issued.

Note that:

(1) If the prompt is triggered for invoice issuance for individuals, you need to read the 15-second prompt message, check "Confirm that I have fully understood the above notifications", and then make the payment.

(2) If issuance on behalf after providing materials is triggered, you need to upload the relevant materials and make payment after review by the corresponding competent tax authority.

(3) If offline coaching is triggered for issuance on behalf, you need to bring relevant materials to an offline tax service venue to handle tax-controlled invoice issuance on behalf.

Warm reminder

For "remuneration for labor services" from individuals providing independent labor services, the individual income tax is withheld and remitted by the payer; don't forget to have the payer withhold individual income tax.

II. The Kailing Invoice Issuance for Individuals platform makes the issuance process simpler

▪ General invoice issuance for goods and services

▪ Freight invoice issuance

▪ Real estate leasing invoice issuance

(1) Registration process

(2) Invoicing process

(4) For invoice issuance for individuals, how is individual income tax filed?

A friend consulted me: our company hired a business-finance-tax consultant at 300 yuan per session. The lecturer went to the tax bureau and issued an electronic invoice for consulting service fees to the company, without noting that the withholding agent should withhold and remit individual income tax. Does the company need to withhold individual income tax?

I believe other colleagues have the same question. According to policy provisions, invoices issued for individuals will note "individual income tax shall be withheld and prepaid (or withheld and remitted) by the payer in accordance with the law." Your company should withhold and remit individual income tax; if there is no such note, you may withhold and remit the individual income tax, or let the other party file the individual income tax themselves.

For example, for the above, if the remark states "individual income tax shall be withheld and prepaid (or withheld and remitted) by the payer in accordance with the law", the enterprise must withhold and remit and file the individual income tax.

Policy basis:

According to the provisions of the Announcement of the Guangxi Zhuang Autonomous Region Tax Service of the State Taxation Administration on Issues Concerning Individual Income Tax on Invoices Issued for Individuals upon Application (Guangxi Zhuang Autonomous Region Tax Service of the State Taxation Administration Announcement No. 4 of 2019), where the taxable income items for which individuals within Guangxi apply for invoice issuance belong toIncome from labor remuneration, author's remuneration, and royaltiesyes, individual income tax is not paid at the time of invoicing, but should be withheld and prepaid (or withheld and remitted) by the withholding agent (the unit paying the income) in accordance with regulations, and full-staff full-amount withholding filing should be handled.

The invoice issuance for individuals obtained by an individual will note "Individual income tax shall be withheld and prepaid (or withheld and remitted) by the payer in accordance with law." If the withholding agent fails to withhold tax that should have been withheld, it shall be handled in accordance with the provisions of the Tax Administration Law of the People's Republic of China.

If the withholding agent withholds and remits individual income tax, how should it be filed?

(5) Withholding agents withhold and remit individual income tax, the full filing process!

Matters to be explained

▪ Individual income tax withholding filing can be handled through the withholding client of the Natural Person Electronic Tax Bureau (some enterprises can use the web portal);

▪ For resident individuals obtainingIncome from labor remuneration, author's remuneration, and royaltiesIt belongs to comprehensive income and needs to be reported by selecting the "comprehensive income filing" module;

If obtained by a non-resident taxpayerIncome from labor remuneration, author's remuneration, and royalties, fill it in under "Non-resident Income Filing";

Because obtainingIncome from labor remuneration, author's remuneration, and royalties's individuals are not enterprise employees, so when collecting personnel information, be sure to select them as other types of personnel. When the employment type is "employee", the general labor remuneration income and other labor remuneration income under comprehensive income/non-resident income cannot be filled in.

Specific operational process for withholding and filing of resident individuals' general labor remuneration income

Step 1, [Personnel Information Collection]:

Select "Normal" for personnel status, select "Other" for employment type, complete other information fields, save, and submit.

Step 2, [Report filling]:

Click "Comprehensive Income Filing" → "Remuneration for Labor Services (General Labor Services, Other Non-Continuous Labor Services)," then "Add" one by one or fill in the template and import the data.

Precautions

1. Insurance salespersons, securities brokers, and intern students (full-time academic education) need to file the "Remuneration for Labor Services (insurance salespersons, securities brokers, other continuous labor services)" filing form.

2. A person may only fill in one entry per month; when selecting a person, if an entry has already been filled in, the existing information will be automatically populated.

3. "Income items" include "general labor remuneration income" and "other non-continuous labor remuneration," among which "other continuous labor remuneration" is only supported for taxpayers whose "employment type" is "intern student (full-time academic education)."

4. "Expenses" means that if each income does not exceed 4,000 yuan, the expenses are calculated at 800 yuan; if each income exceeds 4,000 yuan, the expenses are calculated at 20% of the income.

5. "Deductible taxes and fees": fill in the taxes and fees actually deductible as stipulated by the Individual Income Tax Law and other laws and regulations.

Step 3, [Return Submission]:

After the data is filled in correctly, submit it together with other comprehensive income reports (or other non-resident income reports). If there is tax payable, remember to enter the payment step to complete payment.

Precautions

1. After clicking [Send Filing], the bureau-side server will indicate that filing data is being processed. If the system fails to automatically obtain feedback from the tax authority, you can click [Get Feedback] later to view the filing result. When the current income month filing status is "Filing in Progress" or "Voiding in Progress," [Get Feedback] is available; clicking it will download the filing operation result for that form from the tax authority system.

2. After successful filing, the current income monthNot paid or no payment requiredIf you discover that the filing data is incorrect, you can click [Void Filing] to void the already filed data, or click [Corrected Filing] to modify the successfully filed return data and file again; if payment for the current income month has already been made, only the corrected filing function can be used to modify the filed data and file again.

(6) How should individuals file their own individual income tax?

An individual went to the tax bureau to issue a transportation invoice on their behalf. When obtaining the invoice, the individual was required to file individual income tax themselves. How should the individual file it?

I encountered this problem before too. After going to the tax bureau to issue a transport invoice on behalf of someone, I came back and downloaded the individual income tax app, logged in, and could not find where to file. Then I logged into the web version of the Natural Person Electronic Tax Bureau.

After logging in to the system, I found I Want to Handle Taxes - Business Income Tax Filing Form A, but it asked me to fill in the invested unit. I was puzzled at the time; I just took on business as an individual and had no investment, so what was going on?

When encountering a problem, the key is to solve it. After consulting the tax bureau front desk about the current situation, it became clear that the personal income tax was originally filed at the tax bureau front desk.

Requirements vary by region and local tax bureau; local tax bureau requirements shall prevail.

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