To support the development of small low-profit enterprises, the State Administration of Taxation issued a series of preferential tax policies for small low-profit enterprises, the summary of preferential tax policies are as below:
1、Preferential Policies on Enterprise Income Tax
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Tax Exemption |
The Conditions for Small Low-profit Enterprise |
Regulation |
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can enjoy the tax rate of 20% |
（1）Industrial Enterprise: Annual taxable income is less than RMB300,000, the employees are less than 100, the total assets are less than RMB30 million.
（2）Other Enterprise: Annual taxable income is less than RMB300,000, the employees are less than 80, the total assets are less than RMB10 million. |
Enterprise Income Tax Law |
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Reduced 50% on taxable income, and pay enterprise income tax at the rate of 20% |
For the period from 1st January 2010 to 31st December 2011, the annual taxable income is less than RMB30,000 (including RMB30,000). |
Caishui[2009]No.1
Caishui[2011]No.14 |
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For the period from 1st January 2012 to 31st December 2013, the annual taxable income is less than RMB60,000 (including RMB60,000). |
Caishui[2011]No.117 |
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For the period from 1st January 2014 to 31st December 2014, the annual taxable income is less than RMB100,000 (including RMB100,000). |
Caishui[2014]No.34 |
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For the period from 1st January 2015 to 31st December 2017, the annual taxable income is less than RMB200,000 (including RMB200,000). |
Caishui[2015]No.34 |
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For the period from 1st October 2015 to 31st December 2017, the annual taxable income is more than RMB200,000 and less than RMB300,000(including RMB300,000). |
Caishui[2015]No.99 |
The number of employees includes the number of employees who establish labor relations with the enterprise and the number of dispatching laborers.
The number of employees and the total assets shall be the average value for each quarter during one calendar year. The calculation formula is as follows:
The average value for each quarter=(quarterly initial value + quarterly final value ) ?
The average value for the whole year =the sum of the average value for each quarter?
For the enterprise which starts or ends its business in the middle of the year, the aforesaid related indicator shall be calculated based on its actual operation period.
2、Preferential Policies on VAT and Business Tax—Small Scale Tax Payer
● Caishui[2013]No.52
● Caishui[2015]No.71/ Caishui[2015]No.96
(2) Starting from 1st October 2014 to 31st December 2017, the Small-Scale Tax Payer whose monthly revenue between RMB20,000 and RMB30,000 can enjoy VAT exemption; For the Business Tax Payer whose monthly business revenue less than RMB30,000, it can enjoy exemption for business tax.
● Caishui[2014]No.122
(3) Starting from 1st January 2015 to 31st December 2017, the circular exempts small and micro-sized enterprises whose monthly sales are less than RMB 30,000 or entities making quarterly payments whose sales are less than RMB 90,000, from governmental funds charges. These charges refer to China’s Educational Surcharge, Local Educational Surcharge, Water Conservancy Construction Charge and Cultural Construction Fee.
(4) Eligible small and micro-size enterprises hiring fewer than 20 employees shall be exempt from social security payments for the employment of disabled people within three years upon the incorporation date.
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