Specific provisions on the halving policy of income tax for small and micro profit enterprises
Sending agency: State Administration of Taxation Delivery time: 2021-04-24
From January 1, 2021 to December 31, 2022, for small and micro profit enterprises with an annual taxable income not exceeding 1 million yuan, a reduction of 12.5% will be included in the taxable income, and enterprise income tax will be paid at a rate of 20%. The specific tax management issues related to the implementation of the inclusive income tax reduction and exemption policy for small and micro profit enterprises shall be implemented in accordance with the relevant provisions of the Announcement of the State Administration of Taxation on the Implementation of the Inclusive Income Tax Reduction and Exemption Policy for Small and Micro profit Enterprises (No. 2 of 2019). The Announcement of the State Administration of Taxation on Relevant Issues Concerning the Implementation of Inclusive Income Tax Reduction and Exemption Policies for Small and Micro Profit Enterprises (No. 2 of 2019) stipulates that: Article 2: Small and micro profit enterprises refer to enterprises engaged in industries that are not restricted or prohibited by the state, and meet three conditions: annual taxable income not exceeding 3 million yuan, number of employees not exceeding 300, and total assets not exceeding 50 million yuan. Article 3: Small and micro profit enterprises shall uniformly implement quarterly prepayment of income tax. When prepaying corporate income tax, the total assets, number of employees, and annual taxable income indicators of small and micro profit enterprises are temporarily judged based on the situation as of the end of the current reporting period. Among them, the indicators of total assets and number of employees shall be calculated based on the calculation formula of "quarterly average of the whole year" in Article 2 of the Notice, and the quarterly average value as of the end of the reporting period shall be calculated; The annual taxable income index is temporarily judged based on the standard of not exceeding 3 million yuan as of the end of the reporting period. Article 4: Enterprises that originally did not meet the conditions for small and micro profit enterprises shall, when prepaying enterprise income tax in the middle of the year, be eligible for the small and micro profit enterprise income tax reduction policy based on the cumulative situation as of the end of the reporting period according to the provisions of Article 3 of this announcement. The excess pre paid corporate income tax due to not meeting the conditions for small and micro profit enterprises during the previous period of the current year can be offset against the pre paid corporate income tax in future quarters. For enterprises that prepay corporate income tax on a monthly basis, if they are judged to meet the conditions of small and micro profit enterprises according to Article 3 of this announcement during the prepayment declaration in April, July, and October of the current year, the next prepayment declaration period will be adjusted to quarterly prepayment declaration. Once adjusted, there will be no further changes during the current year. Article 5: Small and micro profit enterprises can enjoy the policy of small and micro profit enterprise income tax reduction and exemption by filling out the relevant content of the tax declaration form when prepaying and settling the enterprise income tax.
