State Administration of Taxation issues announcement to clarify matters related to individual income tax administration.

The State Administration of Taxation issued an announcement regarding the management of individual income tax. 1. Starting from July 1, 2026, individuals who sell scrapped products to recycling enterprises through "integrating the three streams and reverse invoicing" are subject to a prepayment of 0.25% for operating income tax on annual sales revenue of up to 60,000 yuan. For sales revenue exceeding 60,000 yuan, a prepayment of 0.5% for operating income tax is applicable. Other services and management regulations are in accordance with the announcement on "reverse invoicing" issued by the State Administration of Taxation concerning the sale of scrapped products by recycling enterprises to individuals. 2. According to the announcement on the continuation of the individual income tax policy to support residents in purchasing new houses issued by the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development, individuals who sell their own houses and purchase a new one within one year in the same city can apply for a refund of the individual income tax paid on the sale of the current residence. Specific services and management regulations shall be executed in accordance with the announcement on the individual income tax policy to support residents in purchasing new houses issued by the State Administration of Taxation.