Support micro-enterprise development certain tax incentives

Firstly, encourage the creation of micro-enterprises policy

  • (1)   Selling home-grown produce agricultural producers are exempedt from VAT.
  • (2)   Sale of agricultural products by agricultural producers, VAT rate of 13% applies.   Agricultural products are growing, aquaculture, forestry, animal husbandry, aquaculture production of a variety of plants, animals primary products.   Temporarily continue to follow the specific scope of taxation, "The Ministry of Finance, State Administration of Taxation Board on the issuance of " Agricultural Product Tax Base Notes" Notice " ( Cai Shui Zi [1995] No. 52 ) and the relevant provisions of the existing one for execution.
  • (3)    Micro-enterprises wholesale, retail vegetables, are exempted from VAT.
  • (4)   Micro-enterprise production and sales of feed, fertilizer products are at a rate of 13% VAT rate.   Micro-enterprise production and sale of feed products are free from VAT.   Duty-free diet includes:   single bulk feed, mixed feed, feed, concentrate feed and premix material.
  • (5)   Micro-enterprise production and sales of nitrogen, phosphate and fertilizer as the main raw materials duty-free fertilizer are exempted from VAT.
  • (6)   Micro-enterprise production, wholesale and retail of plastic sheeting are exempted from VAT.
  • (7)   Wholesale and retail micro-enterprises seeds, seedlings, fertilizers, pesticides, farm machinery are exempted from VAT.
  • (8)   Production and sales of micro-enterprises and the wholesale, retail and drip irrigation drip tape products are exempted from VAT; production and sales, and wholesale and retail organic fertilizer are exempted from VAT.
  • (9)   Qualifying small profit enterprises, reduced at a rate of 20% on enterprise income tax; since 1 January 2012 to 31 December 2015, on the annual taxable income below RMB 60,000 (including RMB 60,000) a small low-profit enterprises, their income reduced rate of 50 % per taxable income, according to 20% the corporate income tax rate.
  • (10)  Micro-enterprises that engage in the following items of income, are exempted from corporate income tax:-
  1. Vegetables, cereals, potatoes, oilseeds, pulses, cotton, hemp, sugar, fruits, nuts cultivation;
  2. Breeding of new varieties of crops ;
  3. The cultivation of Chinese herbal medicines ;
  4. Tree cultivating and planting ;
  5. Livestock and poultry ;
  6. Gathering of forest products ;
  7. Irrigation, primary processing of agricultural , veterinary, agricultural extension, agricultural machinery operation and maintenance of agriculture, forestry , animal husbandry and fishery service items head;
  8. Deep-sea fishing .

   Micro-enterprises that engage in the following items of income, corporate income tax:-
   (A). Flowers, tea and other beverage crops and spice crops;
   (B). Marine aquaculture and inland aquaculture.

  • (11) qualified micro-enterprises by competent tax authorities for confirmation (for the record), it can enjoy the western development tax administration policies at a reduced rate to 15% on corporate income tax rate.

Secondly, to promote Micro-enterprise Financing Policy


  1. Venture capital investment companies take equity investment in unlisted small and medium high-tech enterprises for more than 2 years, in accordance with its 70% on the amount invested in the equity holders for at least two years of the year against which the venture capital’s business are taxable income; if it is insufficient to offset against the current year then it can be deducted in future tax years come over.
  2. 2013 by the end of financial enterprises and agriculture-related loans to its SME loan risk classification shall in accordance with provisions of the proportion provision, specific allowances for loan losses that are allowed in computing taxable income amount, from 1 January 2009 to 31 December 2013: small loans to farmers to financial institutions with an interest income are exempted from sales tax, taking into account the consideration of taxable income, the amount included in income by 90%; rural credit cooperatives, rural banks, rural credit union funds by initiated establishment of a wholly-owned banking institutions lending firms and corporations that locates in the county (they includes county-level cities, districts, flag) and below is the county regional rural cooperative banks and rural commercial banks, finance and insurance income at a reduced rate of 3% of business tax ; if the insurance company is for farming, aquaculture which provides access and line insurance business premium income in the calculation of taxable income, the proportion of 90% less interest income.
  3. From 1 January 2011 to 31 December 2015:-  Eligible SME credit guarantee institutions may not exceed that year, in accordance with 1% of the balance, at the end of guarantee liability, the provision guarantees compensation reserve ratio allows the enterprise to have an income tax deduction, while the previous year guarantees for compensation accrued in the balance of current income into; qualified SME credit guarantee institutions shall in accordance with no more than year guarantee fee income ratio of 50% unearned provision that allows the enterprise income tax for deduction, while the previous year degree provides unearned balances into current income; SME credit guarantee institutions compensatory incurred actual losses, in order to comply with the tax laws and regulations on asset loss tax deduction policy provisions, it should be deducted from the tax deduction for compensation guarantees quasi-equipment, it is not enough to offset part of the corporate income tax deduction, according thereto.
  4. Form 1 January 2011 to 31 December 2013, the financial firms under  “Loan Risk Classification Guidelines" (Seniors [2001] No. 416) its agriculture and SME loan risk are classified in accordance with the following scale provision for credit loss of specific allowances shall be granted in the calculation of taxable income amount:  1. Mention loans, at a provision rate of 2% ; 2. Substandard loans, at a provision rate of 25%; 3. Doubtful loans, at a provision ratio of 50% ; 4. Loss loans at a provision rate of 100%.
  5. From 1 January 2011 to 31 December 2012, on the animation business for the development of animation products provide animation scripts compiled image design, background design, animation design, storyboard , animation, film , tracing lines, color , image synthesis, dubbing, Soundtrack, sound synthesis, editing, subtitling, compression codecs (network-oriented animation, mobile phone animation format adaptation) services, as  well as cartoon animation business in the territory of the transfer copyright trading income (including animation brand, image, or content licensing and re- grant right), the reduced rate is 3% for business tax.
  6. For those contracts signed during the period from 1 November 2011 until 31 October 31 2014, by financial institutions and small and micro enterprises, they are exempted from stamp duty.
  7. For qualified energy service companies to implement the contract energy management projects, if they achieve sales tax taxable income are exempted from business tax.

Thirdly,  Support of micro-enterprise technical innovation and progressive policy:-

  1. For qualified technology to have technology transfer income in a tax year, if the resident enterprise technology transfer income does not exceed RMB 500 Million of the corporate income tax is under exemption; for more than RMB 5 million, part of corporate income tax.
  2. Pairs have been found to meet the conditions of high-tech enterprises of micro-enterprises since that year onward it can apply and enjoy a reduced tax rate of 15% levy on corporate income tax receipts.
  3. If the Micro-enterprises meet the requirements of research and development costs plus the net, it is an enterprise that for the development of new technologies, new products, new processes made health research and development expenses, and intangible assets that are not formed through profit or loss, in accordance with the provisions deducted on the basis, in accordance with research and development expenses, 50% additional deduction; formation of intangible assets shall be in accordance with 150% of the cost of amortization of intangible assets.
  4. Micro-enterprises that meet the requirements of fixed assets depreciation can be taken to shorten or take accelerated depreciation accelerated depreciation method old. Qualifying fixed assets include:-

(1)    Due to technological advances, product replacement fast fixed assets;
(2)    During the year around in strong vibration, high corrosion fixed assets. Approach should be taken to shorten the depreciation period, the minimum depreciation period shall not be less than the "Enterprise Income Tax Law Ordinance," Article 60 of the depreciation period of 60%; taking the accelerated depreciation method, it can take the double declining balance method or the sum method.

Fourth, to guide micro-enterprise energy conservation and clean production policy

(1)   Micro-enterprises production in line with "Ministry of Finance State Administration of Taxation on Comprehensive Utilization of Resources and Other Products VAT policy notice" ( Cai Shui [2008] No. 156 ) , "Ministry of Finance State Administration of Taxation on VAT resource utilization policies and other products supplementary notice" ( Cai Shui [2009] No. 163 ), "Ministry of Finance State Administration of Taxation on Adjusting the sound integrated resource products and services using the VAT policy notice " ( Cai Shui [2011] No. 115 ) provides a product that can be exempted from value-added Jizhengjitui tax or VAT policy.

(2)   The county level and the following small-scale hydropower unit production of electricity can be calculated according to the rate of levy of 6% VAT.  Generally satisfies taxpayers the sale of the following goods, it can choose a simplified method, in accordance with the rate of levy calculated at a rate of 6% VAT that is not deductible VAT:-     the county level and the following small-scale hydropower unit production of electricity. Small hydro units means all types of investment funding body building less installed capacity of 50,000 kilowatts ( including 50,000 kilowatts ) of small hydro units.

(3)   Micro-enterprise production and sales method using the rotary kiln cement production (including cement clinker), or use the cement clinker grinding process outsourcing cement production, cement production waste raw materials mixed in the proportion of not less than 30% for a VAT Jizhengjitui policy.

(4)   Purchases and the actual use of micro-enterprises included in the "Environmental Protection Equipment Preferential CIT catalog (2008 edition) ",
"Energy saving equipment preferential CIT catalog (2008 edition) ", "Safe Production of Special Equipment CIT Tax concessions catalog (2008 edition) ", it shall within the scope of environmental protection, energy saving, safe production of special equipment and special equipment at a rate of 10% of the amount invested in an enterprise income tax payable tax for credit to that year; corporate tax shall payable when insufficient credit may apply for future years degree of carry-over, but the carry-over period of should not more than five tax years .

(5)   Micro-enterprises with "Comprehensive Utilization of Resources Preferential CIT catalog ( 2008 edition ) " provides the resources as the main raw material materials, production of national non-limiting and non-disabled and those in line with national standards and industry-related products to obtain revenue that is reduced to 90% through year corporate income.

(6)   Enterprises that engage in qualifying environmental protection, energy and water conservation project proceeds, the first production from the project operation income tax year, the first year to third year are exemption from corporate income tax, and the fourth to the sixth year is subject to corporate income tax.

Fifth, to encourage micro-enterprises that placed special populations Employment Policy:-

  1. From 1 July 2007 onwards, the placement of disabled units meet certain conditions, according to the implementation of the tax authorities, it shall in accordance with the actual unit placement of disabled persons, the limit Jizhengjitui VAT approach.  Actual placement of each person with a refundable value added annually. The specific limit tax RMB 35,000 per person per year.
  2. For business enterprises, service enterprises (in addition to the advertising industry, real estate agents, pawn, sauna, massage, oxygen bar outside) , employment services business enterprises and processing enterprises whose in neighborhoods and communities with the processing properties for small business entities shall increase in new jobs in the year newly recruited to the "Employment and Unemployment registration certificate" personnel, with the signing for more than 1 year term labor contracts and pay social insurance premiums according to the law.  According to the actual number of strokes to be fixed by order of deductible business tax, urban maintenance and construction tax and corporate income tax, for shipping fixed standard is RMB 4,800 per person per year.
  3. (3)   Qualifying placement of micro-enterprises in the wages paid to disabled persons shall according to the provisions 100% additional deduction.


Sixth,  Free of charge: Small and Micro enterprises Tax Policy

  • (1)  Levels in the province tax authorities to taxpayers Linggou tax registration certificate, invoice purchase books, tax returns and other table card single book will be free fee.
  • (2)   In accordance with the State Administration of Taxation and the Provincial People's Government regulations, from 1 January 2012 to 31 December 2014, the province at all levels of tax authority on micro-enterprises purchase invoices when the fee waived.
  • (3)   Waive the tax authorities on behalf of invoicing fee.