The applicable tax rate for small-scale enterprises is 3%

The applicable tax rate for small-scale taxpayers is not the tax rate. Under normal circumstances, a 3% tax rate is applicable to small-scale taxpayers, but for some special projects in the business tax-to-VAT pilot program, a 5% tax rate is applicable. The general corporate income tax rate is 25%, and qualified small and low-profit enterprises are levied a corporate income tax at a reduced rate of 20%. Corporate income tax is calculated not based on 25% of operating income, but on 25% of profits (taxable income).

There are two ways to collect income tax: audit collection and verification collection. If it is assessed and levied, income tax will be calculated based on the income.

The general corporate income tax rate is 25%.

Eligible small and low-profit enterprises are levied a corporate income tax at a reduced rate of 20%. High-tech enterprises that need key support from the state are levied a corporate income tax at a reduced rate of 15%.

Corporate income tax is calculated not as 25% of operating income, but as 25% of profits (taxable income).

1. There are two ways to collect income tax:

Account collection and verification collection.

2. If it is subject to approved collection, income tax shall be calculated and paid based on the income.

What are the tax collection methods for small-scale taxpayers

There are three main tax collection methods for small-scale taxpayers: audit collection, audit collection and regular fixed-amount collection.

Accounting and collection: The tax authorities calculate and pay taxes according to the applicable tax rate based on the operating conditions reflected in the accounts provided by the taxpayer. This method is generally suitable for taxpaying units with relatively sound financial accounting systems that can conscientiously fulfill their tax obligations.

Determination and collection: The tax authority determines the output and sales volume of the taxable products produced by the taxpayer based on factors such as the taxpayer’s employees, production equipment, and raw materials used, and collects taxes accordingly. Way. This method is generally suitable for taxpayers whose account books are not complete but can control raw materials or purchased and sold goods.

Regular fixed-amount collection: The tax authorities determine the turnover and income through typical surveys and door-to-door and tax accordingly. This method is generally suitable for small taxpaying units without complete assessment basis.

There are still many preferential tax policies for small-scale taxpayers. Compared with small-scale taxpayers, the corporate income tax rate paid by general enterprises is 25%. However, the state also has strict identification standards for small-scale taxpayers, and ordinary enterprises can also choose reasonable ways to avoid taxes.

What are the identification standards for small-scale taxpayers

1. Taxpayers who are engaged in the production of goods or the provision of taxable services, and those who are mainly engaged in the production of goods or the provision of taxable services, Taxpayers who are also engaged in the wholesale or retail of goods, and whose annual value-added taxable sales (hereinafter referred to as taxable sales) are less than 500,000 yuan (including the original amount, the same below); are "engaged in the production of goods or the provision of taxable services" “Main” means that the taxpayer’s annual sales of goods produced or provision of taxable services account for more than 50% of the annual taxable sales.

2. For taxpayers other than those specified above, the annual taxable sales are less than 800,000 yuan.

3. Other individuals whose annual taxable sales exceed the standards for small-scale taxpayers are taxed as small-scale taxpayers.

4. Non-enterprise units and enterprises that do not frequently engage in taxable activities can choose to pay taxes as small-scale taxpayers.

Legal Basis

Article 28 of the "Enterprise Income Tax Law of the People's Republic of China" stipulates that qualified small and low-profit enterprises shall be levied enterprise income tax at a reduced rate of 20%.

High-tech enterprises that need key support from the state will be levied a reduced corporate income tax rate of 15%.