Notice On Implementing Tax Reduction And Exemption Policy For Small And Micro Enterprises

Fiscal [2019] 13

The departments of Finance (bureaus) of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning, the Finance Bureau of the Xinjiang production and Construction Corps, and the State Administration of Taxation of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning:

In order to implement the decision-making and deployment of the Party Central Committee and the State Council and further support the development of small and micro enterprises, we hereby notify the following matters concerning the implementation of the tax reduction and exemption policy of small and micro enterprises:

First, a small scale taxpayer who has less than 100 thousand yuan of sales value (including this figure) will be exempt from VAT.

Two, for small and small enterprises, the annual taxable income shall not exceed 1 million yuan, and 25% shall be included in the taxable income, and the enterprise income tax shall be paid at the rate of 20%. The portion of the annual taxable income exceeding 1 million yuan but not more than 3 million yuan shall be reduced to 50% of the taxable income, and the enterprise income tax shall be paid at the 20% tax rate.

The small profit enterprises mentioned above refer to those enterprises that are engaged in the state's non restrictive and prohibited industries, and at the same time meet the three conditions of the annual taxable income not exceeding 3 million yuan, the number of employees not exceeding 300, and the total assets not exceeding 50 million yuan.

The number of employees includes the number of employees who establish labor relations with enterprises and the number of workers dispatched by enterprises.

The number of employed persons and total assets should be determined according to the quarterly average value of enterprises throughout the year.

The formula is as follows:

Quarterly mean = (season value + quarter end value) 2

The quarterly average is the sum of the annual average of 4.

In the case of intermediate opening or termination of operation in the year, the above relevant indicators shall be determined as a tax year with its actual operating period.

Three, the people's governments of provinces, autonomous regions and municipalities directly under the central government shall, according to the actual situation in the region and the need for macro regulation and control, determine that the small-scale taxpayers of value-added tax can reduce the resources tax, the urban maintenance and construction tax, the real estate tax, the urban land use tax, the stamp duty (excluding stamp duty on securities pactions), the taxes on farmland occupation and the additional educational fees, and the local educational attaching within the tax rate of 50%.

Four, small-scale taxpayers of value-added tax have already enjoyed the preferential policies of resources tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty, farmland occupation tax, education fee addition and local education plus other preferential policies in accordance with the law. They can superimpose the preferential policies stipulated in the third provision of this circular.

Five. The Circular of the Ministry of Finance on the tax policies of venture capital enterprises and angels investing in individuals (fiscal 55 [2018] 55) second (1) of the "no more than 200 employees" in the conditions of start-ups, is adjusted to "no more than 300 employees", and the total assets and annual sales income are not more than 30 million yuan, adjusted to "total assets and annual sales revenue not more than 50 million yuan".

The investment from January 1, 2019 to December 31, 2021, which has been invested for 2 years and is in accordance with the provisions of this notice and other conditions stipulated in Document No. 55 of fiscal 55 [2018], may be applied to the fiscal policy stipulated in Document No. 55 of fiscal and taxation.

The investment that took place in the first 2 years of January 1, 2019, which has been invested for 2 years since January 1, 2019 and is in conformity with the requirements of this notice and other conditions stipulated in Document No. 55 of fiscal 2018 [2018], may be applied to the fiscal policy stipulated in the fiscal [2018] 55 document.

Six. The execution period of this notice is from January 1, 2019 to December 31, 2021.

The Circular of the Ministry of finance of the State Administration of Taxation on the continuation of the policy of value-added tax for small and micro enterprises (fiscal 2017 [76]) and the Ministry of finance of the General Administration of Taxation on further enlarging the scope of preferential policies for small and small enterprises income tax (fiscal 77 [2018]) are repealed simultaneously.

Seven, the finance and taxation departments at all levels should conscientiously improve the political standing and thoroughly implement the decision and deployment of the tax reduction and reduction by the Central Committee and the State Council, fully understand the importance of the tax reduction and exemption of small and micro enterprises, and earnestly assume the main responsibility for implementation.

We should intensify our efforts, innovate ways, strengthen propaganda and guidance, optimize tax services, enhance tax facilities, and ensure taxpayers and taxpayers pay dividends in real terms.

We should closely follow up the implementation of policies, strengthen investigation and research, and give timely feedback to the Ministry of Finance and the General Administration of Taxation on the outstanding problems and opinions and suggestions reflected in the implementation of policies.

Tax administration of the Ministry of Finance

January 17, 2019