During the period from 1 October 2015 to 31 December 2017, Small and Thin-profit Enterprises, of which annual taxable income falls between RMB 200,000 and RMB 300,000 (inclusive), can also enjoy the privileged corporate income tax policy: pay corporate income tax at 20% based on 50% of its actual taxable income.
For the profit during the period from 1 October 2015 to 31 December 2015, it should be computed based on proportion of operation months after 1 October divided by the total annual operation months in 2015.
Small and Thin-profit Enterprise is assessed according to Corporate Income Tax Law of PRC and other relevant tax regulations.
Lee & Lee Associates Insights:
1.) Correctly calculate the number of operation months and its proportion in 2015;
2.) No need for the Enterprise to do an application to tax bureau in advance.
3.) To avoid complex tax refund process, the Enterprise should carefully calculate and file CIT of Quarter 4 in 2015.
