[Corporate Income Tax] Extension of the 5% tax rate for small businesses until the end of 2027!

According to regulations, the corporate income tax rate of 5% for annual taxable income of 3 million yuan or less will be extended until December 31, 2027.
1. Targeted Enterprises: Small Enterprises (referred to as "small and low-profit enterprises" in Chinese)
A small enterprise is defined as one that meets all of the following four criteria:
● Not engaged in businesses that are restricted or prohibited by the state.
● Annual taxable income of 3 million yuan or less.
● Number of employees not exceeding 300.
● Total assets not exceeding 50 million yuan.
2. Target Period, Range of Annual Taxable Income, and Corporate Income Tax Rate
Target Period: From January 1, 2023, to December 31, 2027 (five years)
Range of Annual Taxable Income: 3 million yuan or less
Corporate Income Tax Rate: The corporate income tax rate is 5%
Announcement on tax and fee policies to further support the development of small enterprises and individual business owners
(Ministry of Finance, State Taxation Administration Announcement No. 12 of 2023)

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