To all Provinces, Autonomous Regions, Municipalities, Fiscal Bureau of Separately Listed Cities, National Tax Bureaus, Local Tax Bureaus and the Finance Bureau of Xinjiang Production and Construction Corps,
 
Having be approved and ratified by the State Council, in order to further support the development of small low-profiting making enterprises, the income tax policy for small low-profit making enterprises is announced as follow:
 
 1. From January 1, 2015 to December 31, 2017, for small low-profit making enterprises whose annual taxable income is less than RMB200,000 (including the RMB200,000), the annual taxable income shall be half of their annual income and be levied at the tax rate of 20%.

The aforesaid small low-profit making enterprises refer to the enterprises conform to the Enterprise Income Tax Law of People’s Republic of China (hereafter referred to Enterprises Income Tax Law) and its implementation regulations. 
 
 2. The number of employees stated in the first and the second item in Article No.92 of the Enterprise Income Tax Law includes the number of employees who establish labor relations with the enterprise and the number of dispatching laborers. 

The indicator of the number of employees and the total assets of enterprises is decided by the quarterly mean value of the year, and the calculation formulas are as follow:
 
Quarterly mean value = (quarterly starting value + quarterly ending value)/2
 
Quarterly mean value of the year = the sum of mean value of each quarter/4
 
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. 
 
The aforesaid calculating method shall be performed since January 1, 2015. Meanwhile the article No. 7 of the Notice on the Enforcement of Preferential Income Tax Policy for Enterprise (Caishui [2009] No.69) shall be suspended.
 
 3. The financial department and tax department at all levels shall corporate with each other, implementing the preferential income tax policy for small low-profit making enterprises in strict accordance with provisions of this Notice. Meanwhile, the financial department and tax department at all levels shall follow and learn the enforcement of the preferential policy and report the new problems timely to ensure a well implementation of the preferential policy.