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How do the Implementation Regulations determine the small profit-making and hi-tech enterprises?

April 26, 2017determine Enterprises Hi-Tech Implementation profit-making regulations small

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How do the Implementation Regulations determine the small profit-making and hi-tech enterprises?

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Article 28(1) of the PRC EIT Law provides that enterprises that satisfy the conditions for small profit making shall be taxed at 20%. By reference to international practices and for the sake of easy administration, the Implementation Regulations specify that (1) in respect of production enterprises, the annual taxable income shall not exceed RMB300,000, total number of employees shall not exceed 100, and the total asset amount shall not exceed RMB 30 million; (2) In respect of non-production enterprises, the annual taxable income shall not exceed RMB300,000, the no. of employees shall not exceed 80, and the total amount of assets shall not exceed RMB 10 million. The scope of the tax concession is larger than that as given under the old tax law for domestically funded enterprises. [Translators note: the new concession shall apply to all types of enterprises in 2008].