Sep 2023 - The extension of the preferential policy for SMEs
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The extension of the preferential policy for SMEs
To further support the development of small and micro enterprise(SMEs), the State Administration of Taxation (SAT) announced the tax preferential policies for SMEs aiming at Corporate Income Tax (CIT) rate and “Six taxes, two fees” will be extended to December 31st, 2027.
We summarize hereafter the main measures for your information.
Conditions of SMEs
An enterprise shall meet all the following criteria to be considered as SMEs:
- Enterprises engaging in non-restricted and non-prohibited businesses
- Annual taxable income amount does not exceed CNY 3M
- Headcount does not exceed 300
- Total assets do not exceed CNY 50M
“Six taxes, two fees” includes the following:
- Local Educational Surcharge
- Resource Tax (excl. Water Resource Tax)
- Urban Maintenance and Construction Tax
- House Property Tax
- Urban Land Use Tax
- Stamp Duty (excl. Stock Trading Stamp Duty)
- Arable land use tax
- Educational Surcharge
Should you have questions as to how these measures will impact you, please do not hesitate to reach out to your Mazars contact.
