Notice on 2010 Corporate Income Tax Payment Change for Small Profit Enterprises

Posted by Reading Time: < 1 minute

May 14 – The State Administration of Taxation issued a circular today regarding 2010 corporate income tax payments for small profit enterprises.

Guoshuihan [2010] No. 185 stipulates that enterprises can enjoy a tax exemption of 15 percent of gross profit if the previous year’s taxable income was under RMB30,000 and the enterprise meets the asset standards and the employee requirements of small, low-profit enterprises. This can be claimed when applying for the enterprise income tax pre-payment (Guoshuihan [2008] No. 44).

The number of employees and the total asset standards for eligible small profit enterprises should be in accordance with the circular Guoshuihan [2008] No. 251. Furthermore, when applying for the 2010 corporate income tax exemption, small profit enterprises are required to provide the previous year’s tax payment record to the tax authorities. The tax authorities will verify the qualifications accordingly, and those who no longer meet the standards will have to pay the tax exemptions back at the annual audit check.