Does "agriculture, forestry, animal husbandry and fishery" refer to farmers?

Agriculture, forestry, animal husbandry, and fishery refer to agriculture in a broad sense, encompassing five major sectors: agriculture, forestry , animal husbandry, sideline occupations, and fisheries. Since agricultural production is inseparable from farmers, does agriculture, forestry, animal husbandry, and fishery refer solely to farmers? The answer is as follows:

Does "agriculture, forestry, animal husbandry and fishery" refer to farmers?

Agriculture, forestry, animal husbandry and fishery do not refer to farmers. Farmers are simply included within agriculture, forestry, animal husbandry and fishery, and are the laborers in these industries. Specifically, it refers to the collective term for five industries: agriculture (crop farming), forestry, animal husbandry, sideline occupations, and fishery ( aquaculture ).

How can farmers, forestry, animal husbandry and fishery apply for tax incentives?

1. Self-assessment

Income derived by enterprises from agricultural, forestry, animal husbandry and fishery projects is exempt from or subject to a reduction in corporate income tax. The scope of industries covered is in accordance with the "National Industrial Classification of Economic Activities" (GB/T 4754-2017).

2. Calculate separately

If an enterprise engages in projects subject to different corporate income tax policies, it should account for them separately in its financial statements and calculate the tax base and preferential amount of the preferential projects separately. If it is unclear whether the calculation is clear, it can be determined by the proportional allocation method or other reasonable methods.



3. Apply for benefits

Enjoy preferential treatment by filling out the "People's Republic of China Enterprise Income Tax Monthly (Quarterly) Prepayment Tax Declaration Form" (Type A, 2021 Edition). In the drop-down menu of the "Income Reduction and Exemption" item, check "Income from agricultural, forestry, animal husbandry and fishery projects is exempt from enterprise income tax (tax-free item)" or "Income from agricultural, forestry, animal husbandry and fishery projects is exempt from enterprise income tax (half-reduction item)", and fill in the amount of income reduced or exempted in the "Cumulative Amount for the Year" column.

4. Data retention

The final step is to collect and organize all the documents to be kept for future reference after the annual tax settlement, so that they can be verified by the tax authorities.