According to the Ministry of Finance? Announcement of the State Administration of Taxation on Implementing Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households (No.12002), and the State Administration of Taxation issued the Announcement of State Taxation Administration of The People's Republic of China on Relevant Matters Concerning Implementing Preferential Income Tax Policies to Support Small and Micro Enterprises and Individual Industrial and Commercial Households (hereinafter referred to as the Announcement). The interpretation is as follows:
First, why should the "Announcement" be issued?
In order to implement the decision-making arrangements of the CPC Central Committee and the State Council, further help market players to recover their vitality and enhance their vitality, and support the development of small and meager profit enterprises and individual industrial and commercial households, the Ministry of Finance and the State Administration of Taxation jointly issued the "Ministry of Finance? Announcement of the State Administration of Taxation on Implementing Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households (No.12, 2002//) stipulates that the annual taxable income of small and micro-profit enterprises and individual industrial and commercial households shall be reduced by half on the basis of the current preferential policies (hereinafter referred to as the "half-reduction policy"). In order to make clear the policy implementation caliber in time, ensure that the tax reduction policy is put in place and the market players should enjoy it, we made this Announcement.
2. What is the scope of application of preferential tax policies?
From 2002 1 year 1 month1day to 20221February 3 1 day, the annual taxable income of small-scale enterprises and individual industrial and commercial households will be reduced by half on the basis of the current preferential policies. Small-scale low-profit enterprises and individual industrial and commercial households can enjoy the policy of halving without distinguishing the collection method.
3. What is the procedure for enjoying preferential tax policies?
Small and low-profit enterprises and individual industrial and commercial households can enjoy the policy of halving income tax in advance and final settlement. When enjoying the policy, they do not need to file, and they can enjoy it by filling in the relevant columns of the enterprise income tax return, or the personal income tax return and the tax reduction and exemption report. For small-scale and low-profit enterprises and individual industrial and commercial households declared by the electronic tax bureau, the tax authorities will automatically provide the pre-filling service of this policy in the declaration form and report form (personal income tax only). For individual industrial and commercial households with regular quota who implement simple declaration, the tax authorities shall pay the tax according to the reduced tax amount.
4. Are there any changes in the criteria for judging small and low-profit enterprises?
The criteria for judging small and low-profit enterprises are still in accordance with the relevant provisions of the Announcement of State Taxation Administration of The People's Republic of China on Relevant Issues Concerning the Implementation of Inclusive Income Tax Reduction and Exemption Policies for Small and Low-profit Enterprises (No.2). That is, small-scale low-profit enterprises refer to enterprises engaged in industries that are not restricted or prohibited by the state, and at the same time meet the three conditions of annual taxable income not exceeding 3 million yuan, employees not exceeding 300, and total assets not exceeding 50 million yuan. Prepaid enterprise 1 2 3