Notice on the suspension of payment of certain taxes and fees for micro, small and medium-sized enterprises in the manufacturing industry in the fourth quarter of 2021

        In order to implement the decisions and arrangements of the CPC Central Committee and The State Council, support the development of micro, small and medium-sized enterprises in the manufacturing industry, and promote the smooth operation of industrial economy, the relevant matters concerning the suspension of payment of certain taxes and fees in the fourth quarter of 2021 for micro, small and medium-sized enterprises in the manufacturing industry (including sole proprietorship enterprises, partnership enterprises and individual industrial and commercial households, the same below) are hereby announced as follows:

        I. The small, medium and micro enterprises in the manufacturing industry mentioned in this Announcement refer to the manufacturing industry in the industrial classification of the national economy. Enterprises with annual sales of more than 20 million yuan (including 20 million yuan) and less than 400 million yuan (excluding 400 million yuan) (hereinafter referred to as medium-sized manufacturing enterprises) and enterprises with annual sales of less than 20 million yuan (excluding 20 million yuan) (hereinafter referred to as small and micro manufacturing enterprises).

        The sales amount refers to the sales amount applied for VAT, including the sales amount declared for tax payment, the sales amount audited and adjusted by tax assessment. Where the difference tax policy applies, it shall be determined by the sales amount after the difference.

        II. The annual sales of small, medium and micro enterprises in manufacturing mentioned in this announcement shall be determined in the following ways:

        For enterprises established for more than one year as of September 30, 2021, it shall be determined according to the sales volume from October 2020 to September 2021;

        For enterprises established less than one year up to September 30, 2021, it shall be determined according to the sales volume of the period up to September 30, 2021 / actual operating months × sales volume of 12 months;

        Enterprises established on or after October 1, 2021 shall be determined according to the sales volume of the first reporting period/actual operating month × sales volume of 12 months.

        III. delay the payment of taxes and fees, including belongs to 2021 in October, November, December (pay by the month), or the fourth quarter of 2021 (quarterly) pay enterprise income tax, individual income tax withholding (except), the domestic value-added tax, excise and attached of urban maintenance and construction tax, education additional, local education, additional, Does not include the tax paid when applying to the tax authority for issuing invoices.

        IV. Small, medium and micro manufacturing enterprises that meet the requirements of this announcement may, after filing tax returns according to law, postpone payment of 50% of the amount of various taxes and fees stipulated in Article 3 of this announcement, and small and micro manufacturing enterprises may postpone payment of all taxes and fees stipulated in Article 3 of this announcement. The period of suspension is three months. Upon expiration of the delay period, the taxpayer shall pay the deferred taxes according to law.

        V. Taxpayers who do not meet the requirements set out in this announcement and fraudulently enjoy the policy of tax delay shall be dealt with by the tax authorities in accordance with the Relevant provisions of the Law of the People’s Republic of China on The Administration of Tax Collection and the Detailed rules for its implementation.

        VI. Small, medium and micro enterprises in the manufacturing industry that meet the requirements set forth in this Announcement and can apply for tax payment extension in accordance with the Provisions of the Law of the People’s Republic of China on The Administration of Tax Collection and the Detailed rules for its implementation can still apply for tax payment extension according to law.

        VII. This announcement shall come into force as of November 1, 2021.

        Hereby announce.

Article source：State Administration of Taxation, Ministry of Finance