2026 Small and Micro Enterprise Tax Incentive Policy Full Interpretation

In 2026, the state continues to strengthen tax support for small and micro enterprises, with multiple incentives extended and optimized. This article systematically outlines available tax benefits.

1. VAT Incentives

Small-scale taxpayers with monthly sales under ¥100,000 (quarterly under ¥300,000) are exempt from VAT. Taxable income at the 3% rate is reduced to 1%. This policy runs through the end of 2027.

2. Corporate Income Tax

For small low-profit enterprises, taxable income up to ¥3 million is taxed at a reduced rate of 5%. Conditions include: no more than 300 employees, total assets not exceeding ¥50 million, and engagement in non-restricted industries.

3. "Six Taxes and Two Fees" Reduction

Small-scale taxpayers, small low-profit enterprises and individual businesses may reduce resource tax, urban maintenance tax, property tax, urban land use tax, stamp duty, farmland occupation tax, and education surcharges by up to 50%.

4. Filing Notes

Enterprises must accurately report employee count and asset totals. The policy uses "self-assessment, declaration-based enjoyment, documentation for reference" without prior approval. Professional assistance is recommended to ensure full benefit.