2023 corporate and individual income tax preferential policies
In order to support the development of small and micro enterprises and individual industrial and commercial households, the relevant tax policies are hereby announced as follows:
1. For small and low-profit enterprises, the annual taxable income does not exceed 1 million yuan, a reduced rate of 25% is included in the taxable income, and the corporate income tax is paid at a tax rate of 20%.
2. For individual industrial and commercial households whose annual taxable income does not exceed 1 million yuan, personal income tax will be halved based on the current preferential policies.
3. For the purposes of this announcement, small and low-profit enterprises refer to enterprises that are engaged in non-restricted and prohibited industries by the state and meet the following three conditions: annual taxable income does not exceed 3 million yuan, the number of employees does not exceed 300, and total assets do not exceed 50 million yuan. enterprises with certain conditions.
The number of employees includes the number of employees who have established labor relations with the enterprise and the number of labor dispatch workers accepted by the enterprise. The so-called indicators of number of employees and total assets should be determined based on the quarterly average of the enterprise throughout the year. The specific calculation formula is as follows:
Quarterly average = (beginning of quarter value + end of quarter value) ÷ 2
Annual quarterly average = sum of annual quarterly averages ÷4
If business activities are opened or terminated in the middle of the year, the actual operating period shall be used as a tax year to determine the above-mentioned relevant indicators.
4. The implementation period of this announcement is from January 1, 2023 to December 31, 2024.
<Source: Ministry of Finance, State Administration of Taxation>