Tax incentives for small enterprises, microenterprises and individual entrepreneurs to reduce financing costs.
All types of SLPEs in China are entitled to a reduced enterprise income tax rate of 20 per cent and a lower tax base. The standard corporate income tax rate is 25 per cent.
The reduction in the tax base for SLPEs is progressive until 2023 as follows:
For taxable income up to RMB1 million (approximately US$152,800), 12.5 per cent of taxable income will be added to the tax base.
For the portion of taxable income exceeding RMB 1 million but not exceeding RMB 3 million (approximately US$458,500),25 per centof the taxable income will be included in the tax base.