The income of individuals whose profit comes from contracting and leasing operations refers to the income generated from contracting, leasing, sub-contracting and sub-leasing operations, including the salary income from each month or each time period.

As follows, are the several conditions of such income:

1. For individuals whose income comes from contracting and leasing operations after submitting a certain amount to the enterprise, individual income tax shall be levied.

Tax to be levied = income from contracting and leasing operations–other necessary costs (RMB 800 each month)

The amount of tax shall be levied according to the 5%-35% of the five-degree aggregate tax rate.

The formula for tax to be levied:

Tax to be levied = Tax to be levied * applicable tax rate–adjustable amount

2. Individuals only get their income according to the agreement and do not have ownership over the contracting and leasing of the operation. Individual tax shall be paid according to the 5%-45% nine-degree tax rate.

Also, if an industrial and commercial registration is changed into an individual operation, then the tax shall be levied according to the production and operation income of the individual business. If no complete and accurate taxation information and documentation can be provided, then the amount of tax to be levied shall be decided by the relevant taxation authorities.