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

 

 

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

      

(1) Starting from 1^st August 2013, The Small-Scale Tax Payer whose monthly revenue less than RMB20,000 can enjoy VAT Exemption; For the Business Tax Payer whose monthly business revenue less than RMB20,000, it can enjoy exemption for business tax.

 

Caishui[2015]No.71/ Caishui[2015]No.96

      

(2) Starting from 1^st October 2014 to 31^st 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 1^st January 2015 to 31^st 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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