Announcement of the State Administration of Taxation of the Ministry of Finance on Further Supportin

                                                                                                                                          The announcement of the taxation administration of the Ministry of Finance in 2023 12 # 2023-8-2

To further support the development of small enterprises and individual industrial and commercial households will now on tax policy announcement is as follows:

1. From January 1, 2023 to December 31, 2027, the individual income tax of individual industrial and commercial households shall be halved for the portion of their annual taxable income not exceeding RMB 2 million yuan. Individual industrial and commercial households may enjoy the preferential policies of this Article on the basis of enjoying other current preferential policies of individual income tax.

2. From January 1, 2023 to December 31, 2027, resource tax (excluding water resource tax), urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding securities transaction stamp tax), cultivated land occupation tax, education fee surcharge and local education surcharge will be levied on small-scale VAT taxpayers, small low-profit enterprises and individual industrial and commercial households by half.

Iii. The policy of reducing the taxable income amount by 25% for small low-profit enterprises and paying the enterprise income tax at the tax rate of 20% will continue to be implemented until December 31, 2027.

Small-scale VAT taxpayers, small low-profit enterprises and individual industrial and commercial households who have enjoyed other preferential policies according to law, such as resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax, cultivated land occupation tax, education fee surcharge, local education surcharge, may enjoy the preferential policies stipulated in Article 2 of this Announcement in addition.

The term "small low-profit enterprises" as mentioned in this Announcement refers to enterprises engaged in industries that are not restricted or prohibited by the State and meet the three conditions of annual taxable income not exceeding 3 million yuan, the number of employees not exceeding 300 people, and the total amount of assets not exceeding 50 million yuan.

Workers, including establish labor relations with the enterprise staff and accept the number of labor dispatching labor in enterprise. The indicators of the number of employees and total assets shall be determined according to the quarterly average of the whole year of the enterprise. The specific calculation formula is as follows:

Quarterly mean = (start of quarter + end of quarter) ÷2

Annual quarterly average = sum of annual quarterly averages ÷4

If the business operation starts or terminates in the middle of a year, the actual operation period shall be taken as a tax year to determine the above-mentioned relevant indicators.

The determination of small and meager profit enterprises shall be subject to the annual settlement result of enterprise income tax. Newly established enterprises registered as general taxpayers of value-added tax, engaged in industries that are not restricted or prohibited by the state, and at the same time meet the two conditions of no more than 300 employees and no more than 50 million yuan of total assets at the end of the last month of the declaration period, can apply for the preferential policies stipulated in Article 2 according to the small low-profit enterprises before the first settlement.

The relevant tax collected before the date of this announcement may be deducted from the tax payable in the following months or refunded. Of go through the cancellation, has no longer back to enjoy.

Notice of the State Administration of Taxation of the Ministry of Finance on Further Implementing the "Six Taxes and Two Fees" Reduction Policy for Small and Micro Enterprises (Notice of the State Administration of Taxation of the Ministry of Finance No. 10, 2022) and Notice of the State Administration of Taxation of the Ministry of Finance on the Preferential Policies for Income Tax of Small and Micro Enterprises and Individual Industrial and Commercial Households (Notice of the State Administration of Taxation of the Ministry of Finance No. 6, 2023) Policy since January 1, 2023, stop the execution accordingly.

This is to announce.

Ministry of Finance Administration of Taxation

August 2, 2023