On January 9, 2019, the executive meeting of the state council decided to launch a number of preferential tax relief measures for small and micro enterprises. This is an important part of the tax cut and fee reduction policy in 2019, and also an important manifestation of the larger tax cuts. Here's a summary of this tax cut:
1. Expand the range of preferential taxes for small businesses
The current enterprise income tax and value-added tax on preferential taxes for small and micro enterprises will be expanded to the current level;
8 taxes:
1. Resource tax
2. Urban maintenance and construction tax
3. The real estate tax
4. Urban land use tax
5. Stamp duty
6. Farmland occupation tax
Original 7 and 8: value-added tax and corporate income tax
2 additional taxes:
1. Additional educational taxes
2. District educational taxes
2. Relax the standards for small and micro enterprises
Now:
Annual taxable income:
CNY 3 million
Amount of employees:
300
Total assets:
CNY 50 million
Before:
Annual taxable income:
CNY 1 million
Amount of employees:
Production industry 100, other industry 80
Total assets:
Production industry 30 million, other industry 10 million
3. Introduce Excess progressive calculation method of income tax
Now:
For small enterprises with annual taxable income not exceeding CNY 1 million: 5% of the actual tax burden (25%*20%)
For small enterprises with annual taxable income not exceeding CNY 3 million: 10% of the tax burden (50%*20%)
Before:
For small enterprises with annual taxable income not exceeding CNY 1 million: 10% of the tax burden (50%*21%)
Taxes are calculated in steps. The amount of taxable income within CNY 1 million shall be 5% income tax. Within CNY 1 million to 3 million, 10% income tax.
4. VAT exemption for small-scale taxpayers will be increased
Now: Monthly sales of CNY 100,000 are exempt from VAT
Previous: Monthly sales of CNY 30,000 are exempt from VAT
5. Improved tax policites for investment of technology start-ups
Venture capital enterprises and angel investors can deduct 70% of their investment amount from taxable income. The criteria is relaex:
Number of employees Total assets and annual sales revenue
Now:
300 people CNY 50 million
Before:
200 people CNY 30 million
By: FINTEGRITY (may not be reposted without consent)
References: General administration of taxation of China
