The original statutory tax rate was 25%. In order to take care of the development of qualified small-scale low-profit enterprises, the state stipulates that the enterprise income tax will be levied at a reduced rate of 20% for qualified small-scale low-profit enterprises.

It is to pay corporate income tax at the rate of 20%, not 5% as mentioned in the title.

Requirements for tax reduction for small and micro enterprises: When making annual declaration for final settlement, enterprises should truthfully fill in relevant indicators such as their industry, total assets of the current year, number of employees, annual taxable income, etc., which will be examined and confirmed by the competent tax authorities. Enterprises that meet the requirements of small-scale low-profit enterprises can pay enterprise income tax at the rate of 20% if they declare final settlement this year and prepay next year.

Extended data:

Enterprise income tax relief includes:

(1) High-tech enterprises in high-tech industrial development zones approved by the State Council are subject to income tax at a reduced rate of 15%; Newly established high-tech enterprises shall be exempted from income tax for 2 years from the year of production.

(2) Industries that serve agricultural production before, during and after delivery in rural areas, namely rural agricultural extension stations, plant protection stations, water pipe stations, forestry stations, animal husbandry and veterinary stations and aquatic products stations.

Living stations, weather stations, farmers' professional technical associations and professional cooperatives are temporarily exempt from income tax on the income obtained from providing technical services or services, as well as the income obtained from providing technical services or services by other urban institutions.

Technical achievements transfer, technical training and technical consultation for scientific research units and colleges and universities serving various industries. Income from technical services and technical contracts is temporarily exempted from income tax.

Newly established independent accounting enterprises or business units engaged in consulting (including consulting in science and technology, law, accounting, auditing, taxation, etc.). ), the information industry and technical service industry shall be exempted from income tax for 2 years from the date of opening.

Newly established independent accounting enterprises or business units engaged in transportation, post and telecommunications shall be exempted from income tax in the first year and levied income tax by half in the second year.

The newly established independent accountants are engaged in public utilities, commerce, materials industry, foreign trade industry, tourism, warehousing industry, residential service industry, catering industry, education and cultural undertakings. Enterprises or business units engaged in health undertakings may, with the approval of the competent tax authorities, reduce or exempt income tax for two years from the date of opening.

(3) The income from the production of products with the resources in the Catalogue of Comprehensive Utilization of Resources as the main raw materials in the production process, and the income from the production of building materials with a large number of coal gangue, slag and fly ash outside the enterprise as the main raw materials, shall be exempted from income tax for five years from the date of production and operation.

Enterprises established to treat and utilize the abandoned resources of other enterprises listed in the Catalogue of Comprehensive Utilization of Resources may, with the approval of the competent tax authorities, reduce or exempt income tax 1 year.

(4) the "old" determined by the state. Enterprises newly established in underdeveloped areas, marginal areas and poverty-stricken areas may be exempted from income tax for three years with the approval of the competent tax authorities.

(5) Income from technology transfer, technical consultation, technical service and technical training related to technology transfer in enterprises and institutions, with an annual net income of less than 300,000 yuan, shall be temporarily exempted from income tax.

(6) In case of serious natural disasters such as wind, fire, water and earthquake, the enterprise may reduce or exempt its income tax 1 year with the approval of the competent tax authorities.

Baidu Encyclopedia-Enterprise Income Tax