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Small Enterprise Service Center

Dec 31, 2019

Corporate Income Tax on Small Enterprises

The most exceptional favorable policy on small enterprises is perhaps about tax.

Under the current Corporate Income Tax Law, the average income tax rate is 25%, but for small business, this rate can be as low as 5% (effective before December 31, 2021).

According to the relevant policies, a small enterprise mentioned above should meet the following conditions concurrently:

1. The invested business/industry shall not be categorized as the “restricted” and/or “forbidden” sector by the state (we will talk about it in another passage; for further information now, please send us your questions to our email);
2. The taxable income (namely gross profit) is less than RMB 3,000,000 (RMB 3 million);
3. The total employees should be less than 300;
4. The total assets of the enterprise should be less than RMB 50,000,000 (RMB 50 million).

To save taxes in a legal way, we can help you design a lot of strategies. For services in this regard, please contact us directly.
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