The two sector further expands small and small profits tax concessions.
2018/7/13
The announcement said that in order to further support the development of small-profit enterprises, we are issuing a circular on the income tax policy for small-profit enterprises.
The announcement clearly states that from January 1, 2018 to December 31, 2020, the upper limit of the annual taxable income of small profit enterprises will be raised from 500,000 yuan to 1,000,000 yuan. For small profit enterprises whose annual taxable income is less than 1,000,000 yuan (including 1,000,000,000 yuan), the income will be reduced by 50% to the taxable income and the enterprise income will be paid at 20% tax rate. Tax.
The term "small-scale and small-profit enterprises" as mentioned in the preceding paragraph refers to enterprises engaged in industries not restricted or prohibited by the state and meeting the following conditions: industrial enterprises shall have an annual taxable income of not more than 1 million yuan, no more than 100 employees and no more than 30 million assets; other enterprises shall have an annual taxable income of not more than 1 million yuan, from which The number of businesses is no more than 80, and the total assets are not more than 10 million yuan.
The number of employees, including the number of employees who establish labor relations with the enterprise and the number of workers who are accepted by the enterprise for labor dispatch.
The number of employed persons and total assets should be determined according to the quarterly average value of enterprises throughout the year. The formula is as follows:
Quarterly mean = (season value + quarter end value) 2
The quarterly average is the sum of the annual average of 4.
If the business is opened or terminated in the middle of the year, the actual operating period shall be taken as a tax year to determine the above-mentioned relevant indicators.
Notice of the General Administration of Taxation of the Ministry of Finance on Expanding the Preferential Policy Scope of Income Tax for Small Profit Enterprises (Finance and Taxation [2017] 43) has been abolished since January 1, 2018. The financial and tax departments at all levels shall, in strict accordance with the provisions of this circular, actively do a good job in publicizing and guiding the preferential income tax policies for small-scale and small-profit enterprises so as to ensure that the preferential policies are implemented in place.
Related laws and regulations: Notice on further expanding the scope of preferential tax policies for small and small enterprises
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