What Does 200 Billion RMB Tax Cut Mean for You? 2019年最新减税政策解读！
The standards for small and micro sized enterprises will be greatly relaxed that they can enjoy corporate income tax concessions, and at the same time increase the income tax incentives.
The eligibility of small and low-profit businesses to benefit from preferential income tax will be significantly expanded. These businesses with an annual taxable income of less than 1 million yuan and between 1m to 3m yuan will be eligible to have their tax calculated based on 25 percent or 50 percent of their taxable income.
This is expected to reduce their tax burden to about 5 to 10 percent. The policy implementation date is from January 1, 2019 to December 31, 2021.
Further reduce the income tax burden of small and micro sized enterprises.
Originally, in 2018, the annual profit was less than 1 million and was levied at 10%.
It is now 5% below 1 million, and 10% at 1.01-3 million.
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The number of employees of industrial enterprises is less than 100, and the total value of assets is less than 30 million;
The number of employees in other industries is less than 80, and the total value of assets is less than 10 million, which is in line with the definition of small and micro sized enterprises.
It will vigorously promote small enterprises to actively regulate and transfer income from private collections to company collections. The income of private accounts will be legally regulated to avoid future tax risks.
In addition, some large companies can also enjoy tax reduction policies by splitting into small and micro sized enterprises.
Raise the threshold for value-added tax for small and micro enterprises.
The executive meeting of the State Council has clarified that for small-scale taxpayers, mainly including small and micro enterprises, individual industrial and commercial households and other individuals, the VAT threshold will be raised from monthly sales of 30,000 yuan to 100,000 yuan.
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The second largest tax reduction and exemption policy will increase the VAT threshold from the original monthly sales of 30,000 to monthly sales of 100,000. That is, the quarterly sales will not exceed 300,000, then the value-added tax will be exempted.
It should be noted here that exemption from VAT is not exempt from corporate income tax, and companies should pay due attention to corporate income tax.