1. What is corporate income tax reduction and exemption? Corporate income tax reduction and exemption refers to a flexible adjustment measure taken by the state to use tax economic leverage to encourage and support the development of enterprises or certain special industries. The Enterprise Income Tax Regulations stipulate in principle two tax exemptions and exemptions. First, enterprises in ethnic regional autonomous areas that need care and encouragement can, with the approval of the provincial people's government, implement regular tax reductions or exemptions; second, relevant laws, administrative regulations and the State Council Enterprises that are provided with tax reductions and exemptions shall comply with the regulations. Among the preferential income tax policies before the tax system reform, those with strong policy nature, large impact, and conducive to economic development and maintenance of social stability can continue to be implemented with the consent of the State Council.
II. The main contents of the corporate income tax reduction and exemption policy (1) High-tech enterprises in high-tech industrial development zones approved by the State Council are levied income tax at a reduced rate of 15%; newly established high-tech enterprises have their own income tax rates. Starting from the year of production, income tax will be exempted for 2 years. (2) For rural industries that serve pre-production, mid-production and post-production services for agricultural production, that is, rural agricultural technology extension stations, plant protection stations, water pipe stations, forestry stations, animal husbandry and veterinary stations, and aquatic product stations. Income derived from technical services or labor services provided by biomass stations, meteorological stations, farmers’ professional technical associations, and professional cooperatives, as well as income derived from technical services or labor services provided by other various urban institutions, are temporarily exempt from income tax. ; Serving technological achievement transfer, technical training, and technical consultation for scientific research units and colleges and universities in various industries. Technical service income obtained from technical services and technical contracting is temporarily exempt from income tax; newly established independent accounting enterprises engaged in the consulting industry (including technology, law, accounting, auditing, taxation and other consulting industries), information industry, and technical service industry or business units, shall be exempted from income tax for 2 years from the date of business opening; for newly established enterprises or business units engaged in transportation, postal and telecommunications industries with independent accounting, shall be exempted from income tax for the first year from the date of business opening. Income tax will be halved in the second year; for newly established companies engaged in public utilities, commerce, materials industry, foreign trade, tourism, warehousing, resident services, catering, education and cultural undertakings with independent accounting. Enterprises or operating units in the health sector may, upon approval by the competent tax authorities, enjoy a reduction or exemption from income tax for two years from the date of business opening. (3) In addition to the products stipulated in the original design, the enterprise comprehensively utilizes the resources generated in the production process of the enterprise and the resources in the "Comprehensive Utilization Catalog" as the main raw materials for the production of products, and the enterprise uses large quantities of coal gangue outside the enterprise. Income from the production of building materials products using slag, fly ash as the main raw materials shall be exempted from income tax for 5 years from the date of production and operation; enterprises established to process and utilize resources abandoned by other enterprises and included in the "Comprehensive Resource Utilization Catalog" , with the approval of the competent tax authority, income tax can be reduced or exempted for 1 year. (4) Newly established enterprises in the "old, minority, border and poor" areas determined by the state can have income tax reduced or exempted for 3 years with the approval of the competent tax authorities. (5) Income from technology transfer by enterprises and institutions, as well as income from technical consulting, technical services, and technical training related to technology transfer that occur during the technology transfer process, and whose annual net income is less than 300,000 yuan, are temporarily exempt from income tax. (6) If an enterprise encounters serious natural disasters such as wind, fire, water, earthquake, etc., with the approval of the competent tax authority, the income tax can be reduced or exempted for one year. (7) Newly established urban labor and employment service enterprises that place more than 60% of the urban unemployed people in the enterprise that year can be exempted from income tax for 3 years upon review and approval by the competent tax authorities; after the expiration of the tax exemption period for labor and employment service enterprises, If the newly resettled unemployed people account for more than 30% of the total number of original employees of the enterprise in that year, upon review and approval by the competent tax authorities, the income tax can be reduced by half for 2 years. (8) Factories run by colleges and universities and primary and secondary schools are temporarily exempt from income tax. (9) Welfare factories run by the civil affairs department and social welfare production units in the streets that are not transferred halfway will be temporarily exempted from income tax if they place people with "four kinds of disabilities" accounting for more than 35% of the total production staff; If the ratio of personnel to the total number of production personnel exceeds 10% but does not reach 35%, income tax will be levied at a half rate. (10) Township enterprises can reduce 10% of the tax payable to subsidize social expenses.