1, the annual taxable income does not exceed 1 million yuan part of the preferential
For the small micro-profit enterprises whose annual taxable income does not exceed 1 million yuan, their income tax can be reduced by 25% of the taxable income, and pay 20% of the rate of enterprise income tax, the effective tax burden is 5% (i.e. 25% * 20%).
2.Preferences for the portion of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan
For the portion of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, the income tax can also be reduced by 25 percent included in the taxable income, and this part of the income is also subject to enterprise income tax at a rate of 20%.
There are several other aspects of EIT reductions and exemptions:
1.Specific Industry or Regional Preferences
For enterprises in encouraged industries (e.g., energy-saving enterprises) located in the western region, there is a reduction of 25%. This policy aims to encourage the development of these specific industries. For third-party enterprises engaged in pollution prevention and control, they can also enjoy a reduced enterprise income tax rate of 15%. In specific areas such as the Shenzhen Park of the Loop Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone and the Hainan Free Trade Port, eligible enterprises can also enjoy a reduction or exemption of enterprise income tax.
2, other tax breaks
For qualified high-tech enterprises, technologically advanced service enterprises, as well as cultural enterprises engaged in areas such as supporting technologies for the cultural industry, etc., they can also enjoy the corresponding enterprise For expenses incurred by enterprises in the comprehensive utilization of resources, development of new technologies, new products, new processes, etc., deductions can be added to the calculation of taxable income. For enterprises investing in technological transformation projects in line with the national industrial policy, 40% of the required investment in domestically produced equipment can be deducted from the enterprise income tax added in the year of purchase of equipment for the technological transformation project compared with the previous year.
3.Other Tax Preferences
Besides direct tax deductions and exemptions, tax preferences for EIT also include direct deductions and exemptions, regular deductions and exemptions, low tax rates, additional deductions, investment tax credits, reduced income, accelerated depreciation, and preferentials with exemptions. depreciation, exemptions and so on. The specific conditions and scope of application of these preferential methods are different, but all of them are aimed at reducing the tax burden of enterprises and promoting their healthy development.
The main reasons why enterprises need to pay taxes
1, the organization of fiscal revenue: taxes are an important source of government revenue, enterprises provide financial support to the government by paying taxes, and these funds are used for the construction and development of the country, such as infrastructure construction, education, health care, national defense and so on. Through taxation, the state can meet general social public **** needs and provide financial resources for the government to implement various social functions.
2, regulating the social economy: taxes can be used as an economic lever, through the increase or decrease of taxes, adjusting the tax rate and tax exemptions and other measures to regulate the social and economic activities, to achieve the purpose of macro-control. Taxation can influence social production, exchange, distribution and consumption, and promote the stable development of social economy.
3. Supervision and management of social and economic activities: Taxation involves all fields of social production, circulation, distribution and consumption, and can comprehensively reflect the quality and efficiency of national economic operation. Through the collection and inspection of taxes, problems existing in social and economic activities can be discovered in time and measures can be taken to solve them.
4. Maintaining state power: Taxation is the most important form and source of income for the state's (government's) public **** finances. The essence of taxation is the state to meet the needs of the social public ****, by virtue of the public **** power, in accordance with the standards and procedures set out in the law, to participate in the distribution of national income, the mandatory acquisition of financial revenue formed by a special distribution relationship.