State Administration of Taxation issues announcement, clarifying matters related to individual income tax management.

According to the Zhitong Financial APP, the State Administration of Taxation has issued an announcement regarding the management of individual income tax-related matters. Starting from July 1, 2026, individuals who sell scrapped products to resource recycling enterprises through "three streams merging into one reverse invoicing" will be subject to a 0.25% prepayment personal income tax on the portion of the annual sales revenue (excluding value-added tax) of "three streams merging into one reverse invoicing" not exceeding 600,000 yuan. The portion exceeding 600,000 yuan will still be subject to a 0.5% prepayment personal income tax on business income. Other services and management regulations will be implemented in accordance with the announcement of the State Administration of Taxation on matters related to resource recycling enterprises selling scrapped products to individuals through "reverse invoicing" (No. 5 of 2024).