China Pushes Small And Micro Enterprises To Reduce Enterprise Income Tax Plan By Half

< p > April 2nd, "a href=" http://sjfzxm.com/news/index_s.asp "> Li Keqiang < /a > chaired the executive meeting of the State Council, and decided to increase the taxable income limit of the small and micro enterprises by half of the corporate income tax, which is further increased by the current annual taxable income of 60 thousand yuan, and the tax reduction policy will be extended to the end of 2016.

Now let's look at the details of the world's clothing and shoe net.

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< p > this is the third time since 2009 that the Chinese government has introduced the enterprise income tax relief policy for small and micro enterprises, and it is also the latest move to ensure economic growth.

The meeting of the State Council stressed that "small and micro enterprises are new forces to promote entrepreneurship, protect employment and activate the market".

However, official information did not disclose the specific figures for raising the upper limit of taxable income for small and micro enterprises.

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Yang Zhiyong, a researcher at the Chinese Academy of Social Sciences < p > a href= "http://sjfzxm.com/news/index_s.asp" > financial < /a > Strategic Research Institute, said that since 2012, the upper limit of tax income for small and micro enterprises that have paid income tax has been reduced from 30 thousand to 60 thousand.

"If we take into account the price factor, this increase to 100 thousand is appropriate."

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< p > April 3rd, Xinhua quoted Liu Shangxi, deputy director of the Ministry of finance of the Ministry of finance, as an analysis. In the first quarter of this year, the downward pressure on China's economy increased. It is necessary for the State Council to further reduce taxes on small and micro enterprises. It helps to better increase employment, promote economic growth, technological innovation and social stability, and is also an important measure to promote the pformation and upgrading of China's economy.

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< p > so-called "a href=" http://sjfzxm.com/news/index_s.asp "> small and micro enterprises < /a >, that is, all kinds of small and micro enterprises except large and medium-sized enterprises.

In China, small and micro enterprises account for more than 76% of the total volume of the Chinese market, contributing 50% of the total annual tax revenue.

In 2014, the government work report clearly stated that it would further expand the scope of tax incentives for small and micro enterprises and lighten the burden on enterprises.

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< p > according to the national small and medium enterprise development report released by the State Administration for Industry and Commerce in March 31st, as of the end of March 2013, there were 11 million 698 thousand and 700 small and micro enterprises in China, accounting for 76.57% of the total number of enterprises.

The value of the final products and services created by SMEs is 60% of the gross domestic product (GDP), accounting for 50% of the total tax revenue of the country, and 65% of the invention patents and 80% of the new products are developed.

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< p > small micro enterprises have made outstanding contributions in promoting employment and are the main absorptive devices for new jobs.

According to the above SAIC report, there are tens of millions of business owners in the small micro enterprises nationwide, and the employment of enterprises has solved the employment of 150 million of China's population.

At the same time, more than 70% of the new employment and reemployment population are concentrated in small micro enterprises.

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< p > China's preferential tax policy for small and micro enterprises began in 2010.

At the end of 2009, in response to the impact of the global financial crisis, the Ministry of Finance and the State Administration of Taxation jointly issued a document that stipulates that from January 1, 2010 to December 31, 2010, the small profit enterprises with annual taxable income less than 30 thousand yuan (including 30 thousand yuan) should be reduced to 50% of the taxable income and the enterprise income tax at the 20% tax rate.

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< p > October 2011, the Ministry of Finance issued further circular that from January 1, 2012 to December 31, 2015, the small profit enterprises with annual taxable income less than 60 thousand yuan (including 60 thousand yuan) should be reduced to 50% according to the taxable income and the enterprise income tax should be paid at 20% tax rate.

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