Notice on Implementing Generalised Preferential Tax Treatment for Small and Thin-profit Enterprises (STEs) (Caishui [2019] No. 13)

17 January 2019

The Ministry of Finance and the State Administration of Taxation jointly issued the above notice on 17 January 2019. Small-scale value-added tax (VAT) taxpayers whose monthly sales volume do not exceed RMB 100,000 shall be exempted from VAT. Besides, for eligible small low-profit enterprises, the first RMB 1 million of annual taxable income would be calculated at a reduction of 75% and taxed at 20%. The portion annual tax income exceeding RMB 1 million but less than RMB 3 million will be calculated at a 50% reduction and taxed at 20%. The notice shall take effect from 1 January 2019 to 31 December 2021.

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