Top news !
Preferential Policy on Enterprise Income Tax (Profit tax):
1. Effective period: Jan 1st, 2022 to Dec 31st, 2024
2. As Small Meagre-profit Enterprise, you can enjoy the Preferential Policy on Enterprise Income Tax (Profit tax) as below:
If Annual profit less than RMB 1 million, you just pay 2.5% profit tax according to current preferential policy;
If Annual profit more than RMB 1 million and less than RMB 3 million, the enterprise profit tax is 5%;
If Company A has annual profit RMB 2,800,000 in Y2022, then its payable Enterprise Income Tax (Profit tax) should be:
RMB1, 000,000 *2.5%= 25,000
Total payable: RMB 115,000
For Chinese version, please refer to below link:
4. If your annual profit more than RMB 3 million, you don’t belong to Small Meagre-profit Enterprise, so you need pay 25% profit tax of your total profit, cannot enjoy the preferential policy.
If Company B has annual profit RMB 3,100,000 in Y2022, it cannot enjoy the preferential policy. Then its payable Enterprise Income Tax (Profit tax) should be:
Legal support :
Announcement on further implementing the Preferential Income Tax Policies for Meagre-profit Enterprise
Announcement No.13, 2022 of the Ministry of Finance& State Administration of Taxation