For the purpose of further supporting the development of small and micro enterprises, relevant policies on taxes and fees are hereby announced as follows:

　　I. As determined by the people’s government of any province, autonomous region, or municipality directly under the Central Government in light of the realities of the local region and in accordance with macroeconomic regulation needs, the resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp tax (excluding stamp tax for securities trading), farmland occupation tax, educational surtax, and local education surcharges of small-scale VAT taxpayers, small low-profit enterprises and individual industrial and commercial households may be subject to a reduction of up to 50% of the tax payable.

　　II. Where small-scale VAT taxpayers, small low-profit enterprises, and individual industrial and commercial households have enjoyed other preferential policies regarding resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp tax, farmland occupation tax, educational surtax, and local education surcharges according to law, they are still entitled to the preferential policies stipulated in Article I of this Announcement on top of the existing policies.

　　III. The small low-profit enterprises mentioned in this Announcement refer to enterprises engaged in industries not restricted or prohibited by the state that simultaneously meet the three conditions of having an annual taxable income of no more than CNY 3 million, a workforce of no more than 300 employees, and total assets worth no more than CNY 50 million.

　　The workforce of the enterprise includes both the number of employees who have established labor relations with the enterprise and the number of workers received by the enterprise from labor dispatch. The said indicators “workforce and total assets” shall be determined by the quarterly average figures of the enterprise throughout the year. The specific formulas for the calculation are as follows:

　　Quarterly average = (figure at the beginning of the quarter + figure at the end of the quarter) ÷ 2

　　Annual quarterly average = Sum of annual quarterly average figures ÷ 4

　　If the business is opened or terminated in the middle of the year, the actual period with business operations shall be taken as a tax year to determine the above-mentioned indicators.

　　The determination of small low-profit enterprises is subject to the results of the filing of annual corporate income tax returns on a consolidated basis. If a newly established enterprise registered as a general VAT taxpayer is engaged in an industry not restricted or prohibited by the state and simultaneously meets the two conditions of having a workforce of no more than 300 employees and total assets not exceeding CNY 50 million at the end of the month before the filing period, it may declare to enjoy the preferential policies stipulated in Article I as a small low-profit enterprise before it files annual tax returns on a consolidated basis for the first time.

　　IV. This Announcement shall be executed from January 1, 2022 to December 31, 2024. 

　　It is hereby announced.

　　Ministry of Finance and State Taxation Administration

　　March 1, 2022