Prepayment at 0.25 percent or 0.5 percent is required.

Pursuant to Article 1 of the Announcement of the State Taxation Administration on Matters Concerning the Collection and Administration of Individual Income Tax, in effect from July 1, where natural person sellers sell the scrapped products they have purchased to resource recycling enterprises through 'Reverse Invoicing with Unified Three Flows', individual income tax on business income shall be prepaid, with respect to the annual sales amount (excluding value-added tax) under this model, as follows:

Not exceeding 600,000 yuan ($89,449.36): For the portion not exceeding 600,000 yuan, individual income tax on business income shall be prepaid at the reduced rate of 0.25 percent.

Exceeding 600,000 yuan: For the portion in excess of 600,000 yuan, individual income tax on business income shall still be prepaid at the rate of 0.5 percent.

Note: Where natural person sellers sell scrapped products through reverse invoicing by other means, individual income tax on business income shall be uniformly prepaid at 0.5 percent of the sales amount.