Private training schools are based on the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations. Individual income tax shall be levied according to the tax item of "income from the production and operation of individual industrial and commercial households" on the income obtained by individuals with the approval of relevant government departments and the license for running schools. Accordingly, individual income tax should be levied on the part of the income obtained by individual school operators for personal consumption.

According to the above policies and regulations, those who do academic education are exempt from business tax, and personal consumption is subject to personal income tax; If it is a non-academic education, it is necessary to pay business tax and personal income tax according to regulations.