The Ministry of Finance (MOF) said in a release on 26 March that for small, low-profit enterprises with annual taxable incomes of CNY 1 million (about $146,000), “25 percent of taxable income shall be included in taxable income, and the enterprise income tax shall be paid at a rate of 20 percent.” (China’s standard business tax rate is 25 percent.)
To be eligible for the lower tax rate, which is in effect from 1 January 2023 to 31 December 2024, a business must meet the definition of a small…