2022 Tax Policy for Small and Micro Sized Enterprises

To support the economic growth of small and medium enterprises, the Chinese Ministry of Finance announced a corporate income tax break for small and micro-sized enterprises (Announcement No. 12 [2021]).

The Announcement No. 12 states that small and medium-sized companies with an annual taxable income not exceeding 1 million yuan will have their taxable income reduced by 12.25%, while any taxable income between 1 to 3 million yuan will be reduced by 50%.

This policy is effective from January 1st 2021 to December 31st 2022.

Source: http://szs.mof.gov.cn/zhengcefabu/202104/t20210409_3683758.htm

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