In order to encourage the development of small and micro enterprises, China government has introduced a series of preferential tax policies. One of them is the preferential tax rate for small and micro enterprises. According to the relevant national policies and regulations, small and micro enterprises refer to value-added tax taxpayers whose annual sales do not exceed 3 million yuan and the taxpayers are small and low-profit enterprises. This kind of enterprise can enjoy a simple collection method of 3% when paying taxes, which is equivalent to 50% of the VAT rate. It is worth noting that the applicable conditions of the preferential tax rate for small and micro enterprises also include: the sales volume does not exceed 3 million yuan (according to the definition of tax law), the industries engaged in are not restricted industries, and the enterprises themselves and their investors have not violated tax laws and regulations. In addition, for some industries, such as cultural creativity and scientific and technological innovation, the government will give more tax breaks and preferential policies to support the development of small and micro enterprises. It should be noted that the scope of application of the preferential tax rate for small and micro enterprises is very strict. If enterprises do not belong to small and micro enterprises or do not meet other conditions, they will not be able to enjoy the preferential policies.
How do small and micro enterprises apply for preferential tax rates for small and micro enterprises? Enterprises can take the initiative to apply for preferential tax rates for small and micro enterprises when filing tax returns. If it meets the requirements, enterprises can choose 3% simple collection method when declaring VAT. For specific application procedures and materials, you can consult the local tax authorities.
The preferential tax rate for small and micro enterprises is a preferential tax policy introduced by China government, which can effectively reduce the tax burden of small and micro enterprises and promote their development. However, it should be noted that the scope of application of this policy is very strict, and enterprises need to carefully check whether they meet the relevant conditions. If in doubt, you can consult the tax authorities or legal advisers.
Legal basis:
Article 53 of the Value-added Tax Law of the People's Republic of China * * * If the taxpayer specified in the State Council is a small-scale enterprise with low profit, the simple collection method can be applied in accordance with the regulations, and the tax rate is 3%.