In recent years, the CPC Central Committee and the State Council have attached great importance to the development of small and micro enterprises and individual industrial and commercial households, issued a series of tax support policies, and continued to strengthen tax reduction and fee reduction. In order to facilitate small and micro enterprises and individual industrial and commercial households to timely understand the applicable tax preferential policies, the State Administration of Taxation has combed the tax preferential policies for small and micro enterprises and individual industrial and commercial households. Today, I take you to know: the reduction and exemption of enterprise income tax for small and low profit enterprises.

1、 Enjoyment subject:

small low-profit enterprises

2、 Offer content:

（1） From January 1, 2021 to December 31, 2022, the part of the annual taxable income of small low profit enterprises not exceeding 1 million yuan shall be included in the taxable income at a reduced rate of 12.5%, and the enterprise income tax shall be paid at a tax rate of 20%.

（2） From January 1, 2019 to December 31, 2021, the part of the annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at a tax rate of 20%.

3、 Enjoyment conditions:

（1） Small low profit enterprises refer to enterprises engaged in industries that are not restricted or prohibited by the state, and meet the three conditions of annual taxable income of no more than 3 million yuan, no more than 300 employees and total assets of no more than 50 million yuan.

（2） The number of employees, including the number of employees who have established labor relations with the enterprise and the number of labor dispatch employees accepted by the enterprise. The indicators of the number of employees and total assets shall be determined according to the quarterly average value of the enterprise in the whole year. The specific calculation formula is as follows:

Quarterly average value = (value at the beginning of the quarter + value at the end of the quarter) ÷ 2

Annual quarterly average = sum of annual quarterly average ÷ 4

In case of opening business or terminating business activities in the middle of the year, the actual business period shall be taken as a tax year to determine the above relevant indicators.

4、 Policy basis:

（1） Article 2 of the notice of the Ministry of Finance and the State Administration of Taxation on implementing the inclusive tax reduction and exemption policy for small and micro enterprises (CS [2019] No. 13)

（2） Announcement of the State Administration of Taxation on issues related to the implementation of the preferential income tax reduction and exemption policy for small low profit enterprises (No. 2 of 2019)

（3） Announcement of the Ministry of Finance and the State Administration of Taxation on the implementation of preferential income tax policies for small and micro enterprises and individual industrial and commercial households (No. 12, 2021)

（4） Announcement of the State Administration of Taxation on matters related to the implementation of preferential income tax policies to support small low profit enterprises and individual industrial and commercial households (No. 8, 2021)