China News Service, April 9th. According to the website of the State Administration of Taxation, the Ministry of Finance and the State Administration of Taxation have recently jointly issued the "Announcement on the Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households" (hereinafter referred to as the "Announcement") to further support small businesses. The development of micro-enterprises and individual industrial and commercial households.
The "Announcement" pointed out that the part of the annual taxable income of small and low-profit enterprises that does not exceed 1 million yuan is in the "Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Inclusive Tax Reduction and Exemption Policies for Small and Micro Enterprises" (Caishui [2019] No. 13) On the basis of the preferential policies stipulated in Article 2, the corporate income tax will be levied by half.
The "Announcement" clarified that for the part of the annual taxable income of individual industrial and commercial households that does not exceed 1 million yuan, on the basis of the current preferential policies, the personal income tax is halved.
The implementation period of the "Announcement" is from January 1, 2021 to December 31, 2022.
Screenshot of the website of the State Administration of Taxation