What are the tax exemptions for small and micro enterprises?

Hello, small and micro enterprises are a collective term for small enterprises, micro enterprises, and individual industrial and commercial households.

The definition criterion is: it belongs to the non-restricted and prohibited industries nationwide, and has annual tax conditions. and meet the following three conditions:

1. The taxable income of the enterprise is less than 3 million;

2. The number of employees in the enterprise is less than 300;

3. Now the total assets are less than 50 million.

This is provided by Youqianhua, which is the credit platform of Du Xiaoman Finance, Du Xiaoman Finance will effectively implement the call of the state to support small and micro enterprises to tide over the difficulties, and fully support the production and operation of small and micro enterprises. It is reported that seventy percent of the credit users of Du Xiaoman Finance are small and micro business owners. Up to now, Du Xiaoman Finance has joined hands with dozens of financial partners to issue hundreds of billions of yuan of loans for small and micro business owners.

On January 9, 2019, the executive meeting decided to increase the tax exemption standard for small-scale VAT taxpayers from 30,000 yuan to 100,000 yuan per month. On January 19, the Notice on the Implementation of the Inclusive Tax Reduction and Exemption Policy for Small and Micro Enterprises (CS 2019 No. 13) stipulates that small-scale VAT taxpayers with monthly sales of less than 100,000 yuan (inclusive) are exempt from VAT. (Criteria for the recognition of small and micro enterprises:

The total assets of the enterprise are less than 50 million yuan, the number of employees is less than 300 people, and the taxable income is less than 3 million yuan. ）

Legal analysis: The part of the annual taxable income of small and micro enterprises that does not exceed 1 million yuan shall be included in the taxable income at a reduced rate of 25%, and the enterprise income tax shall be paid at a rate of 20%.

The part of the annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at the rate of 20%.

For high-tech enterprises that need key support from the state, the enterprise income tax will be levied at a reduced rate of 15%.

Preferential tax treatment for technologically advanced service enterprises, and enterprise income tax will be levied at a reduced rate of 15% for the identified technologically advanced service enterprises.

Legal basis: Article 28 of the Enterprise Income Tax Law of the People's Republic of China Qualified small and low-profit enterprises shall be subject to enterprise income tax at a reduced rate of 20. High-tech enterprises that need to be supported by the state shall be subject to enterprise income tax at a reduced rate of 15.

With the improvement of China's economic growth rate, the state has paid more attention to the development of small and micro enterprises and individual industrial and commercial households, and has given them preferential treatment in tax payment.

For the part of the annual taxable income of small and low-profit enterprises that does not exceed 1 million yuan, the reduction of the spirit will be included in the taxable income at 25%, and the enterprise income tax shall be paid at the rate of 20%; For the part of the annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, it shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at the rate of 20%. According to the Announcement of the State Administration of Taxation of the Ministry of Finance [2021] No. 12 "Announcement of the State Administration of Taxation of the Ministry of Finance on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households", on the basis of the preferential policies stipulated in this article, the enterprise income tax will be reduced by half.

2. According to the announcement of the State Administration of Taxation of the Ministry of Finance on clarifying the VAT exemption policy for small-scale VAT taxpayers (Announcement No. 11 of 2021 of the State Administration of Taxation of the Ministry of Finance), from April 1, 2021 to December 31, 2022, small-scale VAT taxpayers with monthly sales of less than 150,000 yuan (inclusive) will be exempted from VAT.

Types of tax reductions for small and micro businesses.

The State Administration of Taxation has sorted out the state's tax reduction policies for small and micro enterprises and individual industrial and commercial households from three aspects: reducing burdens, promoting financing, and helping entrepreneurship.

1.Reduction and exemption of tax burdens: such as helping small and low-profit enterprises to reduce or exempt the income tax payable, reducing and exempting small-scale VAT taxpayers, and temporarily exempting the employment deposit for the disabled.

2.Promote the development of inclusive finance: such as the reduction and exemption of value-added tax and stamp duty for financial institutions, small loan companies, and agriculture-related small and micro enterprises.

3.Tax incentives for entrepreneurship of key groups: For example, retired soldiers, dependents of military family movements, demobilized military cadres, and disabled people can enjoy VAT exemption and immediate refund when starting a business.

1. Exemption from VAT.

From April 1, 2021 to December 31, 2022, small-scale taxpayers are exempt from VAT if they have VAT taxable sales and the total monthly sales do not exceed 150,000 yuan (if one quarter is one tax period, the quarterly sales amount does not exceed 450,000 yuan).

2. Phased exemption from VAT.

From April 1, 2022 to December 31, 2022, small-scale VAT taxpayers are exempt from VAT if they are subject to the taxable sales revenue of 3%; For prepaid VAT items that apply to the 3% pre-levy rate, the prepayment of VAT will be suspended.

3. Reduce the local "six tax bureaus and two fees".

From January 1, 2022 to December 31, 2024, the people of provinces, autonomous regions and municipalities directly under the Central Government will determine according to the actual situation of their respective regions and the needs of macroeconomic regulation and control, and small-scale VAT taxpayers can reduce resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty (excluding **transaction stamp duty), cultivated land occupation tax and education surcharge and local education surcharge within the range of 50% of the tax amount.

Small-scale VAT taxpayers who have already enjoyed other preferential policies such as resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty, cultivated land occupation tax, education surcharge and local education surcharge in accordance with the law can enjoy this preferential policy in addition.

4. Exemption from construction fees for cultural undertakings.

Enterprises and non-enterprise units with monthly sales of no more than 20,000 yuan (60,000 yuan per quarter) provided by small-scale VAT taxpayers are exempt from the construction fee for cultural undertakings.