Core Viewpoint - The article discusses tax incentives aimed at supporting the development of small and micro enterprises and individual businesses, specifically focusing on a reduction in personal income tax for individual businesses with annual taxable income not exceeding 2 million yuan [2][3]. Summary by Sections Tax Reduction Policy - From January 1, 2023, to December 31, 2027, individual businesses with an annual taxable income not exceeding 2 million yuan will have their personal income tax halved for that portion of income [2]. - This tax reduction can be combined with existing personal income tax benefits [2]. Eligibility Criteria - All individual businesses, regardless of the method of tax collection, are eligible for this tax reduction [3]. - Individual businesses can enjoy this benefit during tax prepayment, with annual taxable income assessed based on the current reporting period, and adjustments made during annual tax reconciliation [3]. Calculation of Tax Reduction - The formula for calculating the tax reduction is as follows: Tax Reduction = (Taxable Income up to 2 million yuan - Other Policy Reductions) × 50% [4]. - Individual businesses can apply for this tax reduction during both prepayment and annual reconciliation of personal income tax without needing to file for approval [4]. Implementation Process - Individual businesses can enjoy the tax reduction by filling out the relevant sections in the income tax declaration form and the tax reduction report form [4]. - For those filing through the electronic tax bureau, the tax authority will automatically provide pre-filled forms related to this policy [4].

Core Viewpoint - The article discusses tax incentives for individual businesses in China, specifically a reduction in personal income tax for those with annual taxable income not exceeding 2 million yuan, aimed at stimulating rural entrepreneurship and employment [1][5]. Tax Incentives for Individual Businesses - From January 1, 2023, to December 31, 2027, individual businesses with an annual taxable income not exceeding 2 million yuan will have their personal income tax halved for that portion [1]. - Individual businesses can enjoy this tax reduction in addition to existing personal income tax incentives [1]. - The tax reduction applies regardless of the method of tax collection for individual businesses [2]. Tax Calculation Method - Individual businesses can benefit from the tax reduction during the prepayment of taxes, with the annual taxable income assessed based on the status at the end of the reporting period [3]. - If an individual business has income from multiple sources, they must consolidate their income for tax reporting to recalculate the tax reduction [3]. - The formula for calculating the tax reduction is: - Tax Reduction = (Taxable Income up to 2 million yuan - Other Policy Reductions × Taxable Income up to 2 million yuan / Total Taxable Income) × 50% [3]. Policy References - The article references two key policy documents: - The announcement from the Ministry of Finance and the State Administration of Taxation regarding support for small and micro enterprises and individual businesses [5]. - The announcement from the National Taxation Administration on implementing personal income tax incentives for individual businesses [5].