According to the notice from State Administration of Taxation, preferential policies of Corporate Income Tax are implemented to further support development of small low-profit enterprises.
Since 01/01/2017 to 31/12/2019, minimum threshold of Corporate Income Tax (per year) rises from 300,000 RMB to 500,000RMB.
As for enterprises with income equal to or less than 500,000 RMB, 50% of their income shall be included into their taxable income. And they should pay corporate income tax at a rate of 20%.
For Example
If an enterprise earns 400,000 RMB/year, its payable taxable income should be (before/after):
Let’s make a comparison, you’ll find that 60,000 RMB will be saved in total under this preferential policy! Really amazing‼️
What Is Small Low-profit Enterprise?
Legitimate enterprise which is:
[Notes]
The prescriptive number of employees as well as total asset should be calculated according to the annual quarterly average.
HACOS,Business Services Solutions Master