Announcement of the State Administration of Taxation on Matters Concerning the Administration of Tax Collection for Implementing the Policy of Further Expanding the Coverage of the Preferential Income Tax Policy for Small and Low-profit Enterprises
Announcement of the State Administration of Taxation on Matters Concerning the Administration of Tax Collection for Implementing the Policy of Further Expanding the Coverage of the Preferential Income Tax Policy for Small and Low-profit Enterprises
Announcement of the State Administration of Taxation on Matters Concerning the Administration of Tax Collection for Implementing the Policy of Further Expanding the Coverage of the Preferential Income Tax Policy for Small and Low-profit Enterprises
Announcement of the State Administration of Taxation [2018] No.40
July 13, 2018
Matters concerning the administration of tax collection under the preferential enterprise income tax policy for small and low-profit enterprises are hereby announced as below, in accordance with the Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax (hereinafter referred to as the "Implementing Regulations of the Enterprise Income Tax Law") and the Circular of the Ministry of Finance and the State Administration of Taxation on Further Expanding the Coverage of the Preferential Income Tax Policy for Small and Low-profit Enterprises (Cai Shui [2018] No.77).
I. During the period from January 1, 2018 to December 31, 2020, any eligible small and low-profit enterprise, no matter whether it pays tax based on account examination or assessment, may enjoy the preferential policy provided in the policy document (Cai Shui [2018] No.77) so that its income will be counted in the taxable income at the half-reduced rate and the enterprise income tax will be calculated and paid at the 20% tax rate (hereinafter referred to as the "half-reduced tax collection policy"), provided that its taxable income is lower than CNY1 million (inclusive, the same below).
Small and low-profit enterprises as mentioned in the preceding paragraph refer to enterprises meeting the conditions provided in Article 92 of the Implementing Regulations of the Enterprise Income Tax Law or in the policy document (Cai Shui [2018] No.77).
Where an enterprise is uncertain about whether it satisfies the criteria of small and low-profit enterprises in the last tax year, when it pays the enterprise income tax in advance for the first quarter of the current year in that the final settlement of enterprise income tax for the last tax year has not been completed, it may judge whether it satisfies the said criteria according to the advanced payment of enterprise income tax made by itself for the fourth quarter of the last tax year.
II.
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