What is the invoicing tax rate for small and medium-sized enterprises
Small and micro-enterprises are the main force of China's national economy and social development, accounting for the vast majority of the main body of China's enterprises, playing an important role in the tax revenue, absorption of employment and so on. Under the normalization of epidemic prevention and control, the development environment of small and micro enterprises is more severe. The State Administration of Taxation has also introduced a number of tax incentives to help enterprises survive. src="/zhidaopic/20230110/baidubaijiahao/bb120a06df56b266bbe788b5f3ac26ee.jpeg"/>?01 VAT exemption for small-scale taxpayers Policy 1, small-scale taxpayer standards: From May 1, 2018, the annual sales standards for small-scale taxpayers in industrial and commercial enterprises will be adjusted upward from 500,000 yuan and 800,000 yuan to 5 million yuan 2, small-scale taxpayers applying a 3% levy rate exemption from value-added tax (VAT) From April 1, 2022, to December 31, 2022, the VAT Small-scale taxpayers are exempted from VAT on taxable sales income subject to the 3% levy rate; prepaid VAT items subject to the 3% pre-payment rate are suspended from pre-payment of VAT. (Ministry of Finance General Administration of Taxation Announcement No. 15 of 2022) Small-scale taxpayers applying 3% taxable sales income exempted from VAT shall issue tax-exempted VAT invoices in accordance with the regulations. If the taxpayer chooses to waive the exemption and issue special VAT invoices, it shall issue special VAT invoices with a levy rate of 3%. (State Administration of Taxation No. 6 of 2022) 3. Circumstances in which small-scale taxpayers are subject to a 5% levy rate: (i) Small-scale taxpayers transferring real estate they have acquired (including self-constructed); (ii) Small-scale taxpayers of real estate development enterprises selling and renting out self-developed real estate projects; (iii) Small-scale taxpayers renting out real estate; (iv) Small-scale taxpayers providing labor dispatch services opting for differential taxation; (v) Small-scale taxpayers providing security protection services opting for differential taxation; (vi) Small-scale taxpayers transferring land use rights acquired before April 30, 2016, and taking the balance of the full price and out-of-the-money expenses acquired less the original price of acquiring such land use rights as the sales, and charging the tax at a rate of 5 percent to The VAT shall be calculated and paid at a rate of 5%; (vii) Small-scale taxpayers leasing land to others by way of business lease. 4 Not more than 150,000 yuan / month or 450,000 yuan / quarter exemption From April 1, 2021 to December 31, 2022, small-scale taxpayers incurred VAT taxable sales behavior, the total monthly sales of not more than 150,000 yuan (quarterly sales of quarterly sales of not more than 450,000 yuan, the same below), exempted from value-added tax. If a small-scale taxpayer has a VAT-taxable sales behavior, and the total monthly sales exceed 150,000 yuan, but after deducting the sales of immovable property in the current period, the sales of goods, services, services and intangible assets are exempted from VAT. Small-scale taxpayers applying the VAT differential tax policy shall determine whether they can enjoy the VAT exemption policy stipulated in this announcement by the sales amount after the difference. (State Administration of Taxation Announcement No. 5 of 2021) 5 Individuals with monthly rental income not exceeding RMB 150,000 are exempted from VAT If other individuals referred to in Article 9 of the Implementing Rules of the Provisional Regulations of the People's Republic of China on Value-added Tax (VAT), who rent out immovable properties in the form of one-time rent, can share the rental income evenly during the corresponding rental period, and if the apportioned monthly rental income does not exceed RMB 150,000, they are exempted from VAT. If the monthly rental income after apportionment does not exceed 150,000 yuan, it shall be exempted from value-added tax. (State Administration of Taxation Announcement No. 5 of 2021) 6 No Advance Payment Required if Monthly Sales Do Not Exceed RMB 150,000 Small taxpayers who are required to make advance payment of value-added tax according to the current regulations are not required to make advance payment of tax for the current period if their monthly sales do not exceed RMB 150,000 at the place where advance payment is to be made. (State Administration of Taxation Announcement No. 5 of 2021) 7 Exemption of VAT on Interest Income from Loans by Financial Institutions From September 1, 2038 to December 31, 2020, financial institutions shall be exempted from VAT on interest income from small loans granted to small enterprises, micro-enterprises, and individual industrial and commercial households. (Circular of the Ministry of Finance and the State Administration of Taxation on the Policy of Exempting VAT on Interest Income from Loans to Small and Micro Enterprises by Financial Institutions Cai Shui (2018) No. 91) 8 Small-Scale Taxpayers Can Issue Special Invoices on Their OwnPurpose Starting from February 1, 2020, small-sized taxpayers of value-added tax (except for other individuals) can voluntarily issue special invoices of value-added tax by using the value-added tax invoice management system if they need to issue special invoices of value-added tax for their VAT-taxable behaviors. management system. For small-scale taxpayers who choose to issue VAT special invoices on their own, the tax authorities will no longer issue VAT special invoices on their behalf. (Ministry of Finance State Administration of Taxation Announcement No. 87 of 2019) 02 VAT surcharges reduction and exemption policy 1 Quarterly invoicing amount of less than 300,000 yuan Quarterly invoicing amount of less than 300,000 yuan, regardless of whether special invoices or ordinary invoices should enjoy the (CaiShui [2016] No. 12) document related to the exemption of education surcharges and local education surcharges. 2 Quarterly invoicing amount is more than 300,000 yuan but less than 450,000 yuan If ordinary invoices are issued, education surcharges and local education surcharges shall be exempted If special invoices are issued, VAT small-scale taxpayers shall enjoy the halved education surcharges and local education surcharges in accordance with the provisions of the document of CaiShui[2019]No.13 3 Quarterly invoicing amount is more than 450,000 yuan Small-scale VAT taxpayers with a quarterly invoice amount of more than 450,000 yuan, regardless of whether they issue special invoices or ordinary invoices, should enjoy the relevant provisions of the document Cai Shui [2019] No. 13, then it is a half reduction in the levy of education surcharges and local education surcharges. 03 Small micro-profit enterprises to reduce or waive the enterprise income tax A small micro-profit enterprise tax rate 2021-2022 ≤ 1 million million - 3 million: 10% January 1, 2021 to December 31, 2022, the small micro-profit enterprises annual taxable income does not exceed 1 million yuan in the part of the "Ministry of Finance and Taxation on the implementation of small and micro-enterprise preferential (Circular of the Ministry of Finance and the State Administration of Taxation on the Implementation of Preferential Tax Reduction and Exemption Policies for Small and Micro Enterprises) (Cai Shui [2019] No. 13), on the basis of the preferential policies stipulated in Article 2 of the Circular, the enterprise income tax will be further reduced by half. (Announcement of the Ministry of Finance and the State Administration of Taxation No. 12 of 2021) Effective from January 1, 2021, and terminated on December 31, 2022. For small micro-profit enterprises, the part of annual taxable income not exceeding 1 million yuan shall be reduced to 20% of the taxable income and paid as enterprise income tax. (Announcement of the State Administration of Taxation No. 8 of 2021) Second, the tax rate for small and micro-profit enterprises 2022-2024 ≤1,000,000,000-3,000,000:5% From January 1, 2022 to December 31, 2022, for small and micro-profit enterprises with annual taxable income exceeding 1,000,000,000 yuan but not exceeding 3,000,000,000 yuan, a reduced rate of 25% of the annual taxable income shall be credited to taxable income, and an enterprise income tax shall be paid at a rate of 2% of the total taxable income. The small micro-profit enterprises are recognized by the following criteria: Total assets - Number of employees - Taxable income - The number of employees includes the number of employees who have established a labor relationship with the enterprise and the number of employees who have been dispatched by the enterprise for labor dispatch. The number of employees and total assets shall be determined on the basis of the quarterly average of the enterprise for the whole year. The specific formula is as follows: Quarterly average = (beginning of the quarter + end of the quarter) ÷ 2 Quarterly average for the whole year = the sum of the average of all quarters of the year ÷ 4 If the enterprise opens or terminates its business activities in the middle of the year, the actual period of operation will be taken as a tax year to determine the above indicators. 04 Preferential Depreciation for Micro, Small and Medium Enterprises (limited to 2022) Micro, small and medium-sized enterprises in the period from January 1, 2022 to December 31, 2022, the newly purchased equipment, appliances, unit value of more than 5 million yuan, in accordance with a certain percentage of the unit value of the voluntary choice of the deduction of the pre-tax enterprise income tax. Among them, the implementation regulations of the Enterprise Income Tax Law provides that the minimum depreciable life of the equipment and apparatus for three years, 100% of the unit value of the current year can be deducted in a one-time pre-tax; the minimum depreciable life of four, five, 10 years, 50% of the unit value of the current year can be deducted in a one-time pre-tax deduction, and the remaining 50% of the depreciation in the remaining years of pre-tax deduction according to the provisions of the calculation of depreciation. Enterprises that choose to apply the above policy for the current year's shortfall in deducting the formation of losses, can be carried forward in the next five tax years to make up for the enjoyment of other policies to extend the loss carry-forward years of enterprises can be implemented in accordance with the current provisions. (Announcement of the Ministry of Finance and the State Administration of Taxation No. 12 of 2022) Second, the micro, small and medium-sized enterprises referred to in this announcement refers to enterprises engaged in national non-restricted and prohibited industries that meet the following conditions: (a) information transmission, construction, leasing and business services: 2,000 or fewer employees, or operating revenue of less than 1 billion yuan or total assets of less than 1.2 billion yuan (b) real estate development and operation: operating revenue of less than 1 billion yuan or less than 1.2 billion yuan (c) real estate development and operation: operating income of less than 1 billion yuan or total assets of less than 2 billion yuan. Real estate development and operation: business revenue of less than 2 billion yuan or total assets of less than 100 million yuan (c) Other industries: less than 1,000 employees or business revenue of less than 400 million yuan. Enterprises with the policy of transferring years can follow the current regulations (Announcement of the Ministry of Finance and the State Administration of Taxation No. 12 of 2022) 05 Individual Income Tax Reduction and Exemption Policies 1 Individualized business income not exceeding 100 yuan is reduced by half From January 1, 2021 to December 31, 2022, for the part of individual industrial and commercial enterprises whose business income is not more than 1 million yuan of taxable income per annum, on the On top of the existing preferential policies, the individual income tax will be further reduced by half (Ministry of Finance SAT Announcement No. 12 of 2021 / State Administration of Taxation Announcement No. 8 of 2021 ) 2 Individual industrial and commercial enterprises, sole proprietorships, partnerships, and individuals will no longer be subject to the advance levy of the individual income tax when they issue invoices of value-added tax (VAT) on behalf of the goods transportation industry. From April 1, 2021, individual industrial and commercial households, sole proprietorships, partnerships and individuals will no longer be pre-collected individual income tax when issuing VAT invoices for the transportation of goods. (State Administration of Taxation Announcement No. 8 of 2021) 06 Reduction and exemption of local "six taxes and two fees" for small-scale taxpayers, small and micro-enterprises and individual industrial and commercial households Small-scale taxpayers, small and micro-enterprises and individual industrial and commercial households will be reduced by 50% From January 1, 2022 to December 31, 2024, the local taxpayers, small and micro-enterprises and individual industrial and commercial households will be exempted from local "six taxes and two fees". The people's governments of provinces, autonomous regions and municipalities directly under the central government shall, in accordance with the actual situation in their respective regions and the needs of macro-control, reduce the levies on resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding the stamp duty on securities transactions), cultivated land occupancy tax, and surcharges on education fees and local education surcharges by 50% for small-scale taxpayers, small micro enterprises and individual industrial and commercial households of the value-added tax. Small-scale VAT taxpayers, small micro-profit enterprises and individual businessmen who have legally enjoyed other preferential policies on resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty, cultivated land occupation tax, education surcharge and local education surcharge can enjoy the preferential policies stipulated in Article 1 of the Announcement in a stacked manner (the Ministry of Finance and the State Administration of Taxation on the further implementation of the "Six Taxes and Two Fees" for Small and Micro Enterprises). "Announcement of the Ministry of Finance and the State Administration of Taxation on the Further Implementation of the Reduction and Exemption Policies for Small and Micro Enterprises of the Six Taxes and Two Fees, Announcement of the Ministry of Finance and the State Administration of Taxation No. 10 of 2022) 07 Exemption or Reduction of Construction Fees for Cultural Affairs Programs 1. Exemption of Construction Fees for Cultural Affairs Programs for Eligible Small Scale Taxpayers of VAT Small scale taxpayers of VAT with monthly sales of not more than 20,000 yuan (60,000 yuan taxable on a quarterly basis), as well as non-enterprise units providing taxable services are eligible to enjoy this announcement. Enterprises and non-enterprise units of small-scale VAT taxpayers with monthly sales of up to 20,000 yuan (60,000 yuan per quarter) are exempted from the construction fee for cultural undertakings. 2. Reduction of cultural construction fees for eligible payers From July 1, 2019 to December 31, 2024, cultural construction fees attributable to the central government's revenue will be reduced by 50% of the amount payable by the payer; for cultural construction fees attributable to local revenues, provincial (autonomous regions and municipalities) finance and party propaganda departments can combine the level of local economic development, the development of propaganda and ideological and cultural undertakings, and other factors. For the cultural construction fee which belongs to the local income, the finance and propaganda departments of the Party committee of each province (autonomous region and municipality) may reduce the levy within the range of 50% of the payable fee by taking into account the level of local economic development and the development of propaganda, ideology and cultural undertakings. Provinces (autonomous regions and municipalities) finance, party propaganda departments should be developed in the region to reduce the policy documents copied to the Ministry of Finance, the Central Propaganda Department. 08 Exemption of Disabled Persons' Employment Guarantee Fund and Graded Reduction of Payment 1. From January 1, 2020 to December 31, 2022, enterprises with 30 or fewer employees are temporarily exempted from the collection of the Disabled Persons' Employment Guarantee Fund. (Announcement of the Ministry of Finance on the Adjustment of the Collection Policy on the Collector's Employment Security Deposit, No. 98 of 2019) 2. From January 1, 2020 to December 31, 2022, the policy of reducing the payment of the security deposit for the employment of persons with disabilities is implemented on a graded basis. Among them, if the proportion of employers arranging for the employment of disabled persons reaches 1% or more, but does not reach the proportion stipulated by the people's governments of the provinces, autonomous regions and municipalities directly under the central government in which they are located, they shall pay 50% of the amount of the stipulated contribution to the Employment Security Fund for the Disabled; and if the proportion of employers arranging for the employment of disabled persons is less than 1%, they shall pay 90% of the amount of the stipulated contribution to the Employment Security Fund for the Disabled. (Announcement of the Ministry of Finance on the Adjustment of Policies for the Collection of Employment Security Funds for the Disabled, No. 98 of 2019) We, as the State Administration of Taxation's Golden Three and Golden Four system contractors, follow up on policies in a timely manner, create a digital management system for invoices for enterprises to realize the full life cycle management of invoices, such as issuance, query, delivery, checking, authentication, download, etc., intelligently collect invoices from various sources of channels, and automate the issuance of invoices. It also provides data analysis reports based on invoices, controls invoice-related tax risks, improves the efficiency of financial staff, and reduces tax risks. l Free basic invoice capability l Invoice automation system l Invoice intelligent collection system l Invoice insight system l Intelligent collaboration system.