Announcement on the Implementation of Preferential Income Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households

　　Announcement of the Ministry of Finance and the State Taxation Administration on the Implementation of Preferential Income Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households

　　Document No.: Announcement No. 12 [2021] of the Ministry of Finance and the State Taxation Administration

　　Issued by: The Ministry of Finance and the State Taxation Administration

　　Date of Issuance: April 2, 2021

　　To further support the development of micro and small enterprises and individual industrial and commercial households, the matters concerning the implementation of preferential income tax policies for micro and small enterprises and individual industrial and commercial households are hereby announced as follows:

　　I. For the part of small low-profit enterprises’ annual taxable income not exceeding RMB1,000,000, the enterprise income tax shall be further half-reduced on the basis of the preferential policy stipulated in Article 2 of the Notice of the Ministry of Finance and the State Taxation Administration on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (No. 13 [2019] of the Ministry of Finance).

　　II. For the part of individual industrial and commercial households’ annual taxable income not exceeding RMB1,000,000, the individual income tax shall be further half-reduced on the basis of the existing preferential policy.

　　III. This Announcement shall be executed from Jan. 1, 2021 to Dec. 31, 2022.

　　It is announced specially here.

　　The Ministry of Finance and the State Taxation Administration

　　April 2, 2021