How to calculate the income tax of Chinese small and micro enterprises

2020/10/29

How to calculate the income tax of Chinese small and micro enterprises

1. Small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (including this figure) are exempt from VAT.


2. For the part of China's small and low-profit enterprises whose annual taxable income does not exceed 1 million yuan, 25% shall be included in the taxable income, and the corporate income tax shall be paid at a tax rate of 20%; for the annual taxable income exceeding 1 million yuan However, the part not exceeding 3 million yuan will be included in the taxable income at a reduced rate of 50%, and the corporate income tax will be paid at the tax rate of 20%.

The above-mentioned small and low-profit enterprises refer to enterprises that are engaged in non-restricted and prohibited industries by the state and meet the three conditions of annual taxable income not exceeding 3 million yuan, no more than 300 employees, and total assets not exceeding 50 million yuan.

The number of employees includes the number of employees who have established labor relations with the enterprise and the number of labor dispatch workers accepted by the enterprise. The so-called number of employees and total assets indicators shall be determined according to the company's quarterly average throughout the year. The specific calculation formula is as follows:

Quarterly average = (beginning of the quarter + end of the quarter) ÷ 2

Annual quarterly average = the sum of the annual quarterly averages ÷ 4

For those who start or terminate business activities in the middle of the year, the actual business period shall be used as a tax year to determine the above-mentioned relevant indicators.

3. The people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall determine based on the actual conditions of the region and the needs of macro-control. Small-scale taxpayers of value-added tax can be reduced within 50% of the tax amount of resource tax, urban maintenance and construction tax, real estate tax, Urban land use tax, stamp tax (excluding securities transaction stamp tax), farmland occupation tax, education surcharge, and local education surcharge.

4. Small-scale VAT taxpayers who have already enjoyed resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax, cultivated land occupation tax, education surcharge, local education surcharge and other preferential policies in accordance with the law can enjoy this notice in combination Preferential policies stipulated in Article 3.

5. "Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies for Venture Capital Enterprises and Individual Angel Investors" (Caishui [2018] No. 55) Article 2 (1) of the conditions for start-up technology-based enterprises, "the number of employees shall not exceed "200 people" is adjusted to "the number of employees does not exceed 300", and "total assets and annual sales income do not exceed 30 million yuan" to "total assets and annual sales revenue do not exceed 50 million yuan".

For the investment that occurred from January 1, 2019 to December 31, 2021, if the investment has been over 2 years and meets the requirements of this notice and other conditions specified in Caishui [2018] No. 55, Caishui [2018] No. 55 may be applied Prescribed tax policy.

For investments that occurred within the 2 years prior to January 1, 2019, if the investment for 2 years from January 1, 2019 and meets the requirements of this notice and other conditions specified in Caishui [2018] No. 55, the tax [2018] 55 may be applicable Taxation policy stipulated in Document No.

6. The implementation period of this notice is from January 1, 2019 to December 31, 2021. "Notice of the Ministry of Finance and the State Administration of Taxation on Continuing the Value-Added Tax Policy for Small and Micro Enterprises in China" (Caishui [2017] No. 76), "Notice of the Ministry of Finance and the State Administration of Taxation on Further Expanding the Scope of Preferential Income Tax Policies for Small and Low-Profit Enterprises" (Cai Shui [2018] 77 No.) shall be repealed at the same time.

7. Finance and taxation departments at all levels must effectively improve their political positions, thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council for tax reduction and fee reduction, fully understand the importance of inclusive tax reduction and exemption for small and micro enterprises, and earnestly assume the main responsibility for implementation , Regard it as a major task, strengthen organization and leadership, carefully plan and deploy, and implement it without compromise. It is necessary to intensify efforts, innovate methods, strengthen publicity and guidance, optimize taxation services, improve taxation convenience, and ensure that taxpayers and payers can actually enjoy the policy dividends of tax reduction and fee reduction. It is necessary to closely track the implementation of the policy, strengthen investigation and research, and timely feedback to the Ministry of Finance and the State Administration of Taxation on outstanding issues, opinions and suggestions reflected by all parties in the implementation of the policy.