Small and micro enterprises with a monthly income of less than 20,000 yuan are not directly exempt from corporate income tax, but they have tax incentives.

According to the "Announcement of the State Administration of Taxation on Issues Concerning Expanding the Scope of Half-halved Corporate Income Tax for Small and Low-Profit Enterprises", the State Administration of Taxation Announcement No. 23 of 2014 stipulates that small low-profit enterprises that are subject to audit collection and fixed-rate collection, If the previous tax year meets the conditions of small and low-profit enterprises, and the annual taxable income is less than 100,000 yuan (including 100,000 yuan), the corporate income tax will be prepaid based on the actual profit amount this year, and the cumulative actual profit amount during prepayment shall not exceed 100,000 yuan, you can enjoy the preferential policy of halving the income tax of small and low-profit enterprises.

Therefore, if the actual profit of small and micro enterprises does not exceed 100,000 yuan, the corporate income tax is calculated and paid according to 50% of the actual profit and the tax rate of 20%. In fact, the corporate income tax is levied at the tax rate of 10%.