In 2021, China introduced a new tax policy, which is favorable for small-scale taxpayers. One of the value-added tax exemption was mentioned as 150,000 per month and 450,000 per quarter, and the general tax is declared in accordance with the quarter, so as long as the quarterly value-added tax of small-scale taxpayer enterprises does not exceed 450,000 is exempted from the part of the tax.

In addition to the national preferential policies enterprises can enjoy, local tax incentives small-scale enterprises can enjoy at the same time. These local tax incentives are the local government in order to promote the development of the local area, in order to attract investment policies introduced to attract enterprises to the local tax depression park. The government's preferential policies are to save tax for the enterprises, enjoy the preferential policies in the park, and also do not affect the existing office address and business model of the enterprises.

There are no regulations on the requirements of the industries to be located in the park, and in general, most of the parks are for the service industry, which has a low VAT rate of only 6%, but a high VAT rate with a high turnover.

One of the preferential tax rates for investment promotion:

The value-added tax (VAT) in the park is 50% of the local retention, and the local retention is based on a 70%-85% incentive for the enterprises;

The income tax is based on a 40% local retention, and the incentive for the enterprises is based on a 70%-85% incentive for the enterprises.

The VAT rate for the park is 50%, and the VAT rate for the enterprises is 70%-85% of the local retention. An enterprise paying 3 million dollars in value-added tax will get 1.05 million dollars in incentive support.

Two, sole proprietorships approved

Headquarter economic investment in the very beginning, but also a place where you can save tax. In some other tax depressions will also have some good policies suitable for enterprises, in addition to the above mentioned limited company tax rebate policy, so that enterprises are interested in the approval of the sole proprietor. Sole proprietorship of the approved levy is actually a lot of parks around the country, generally is the law of the levy, many companies have to register sole proprietorships in Shanghai, but at this stage, then, Shanghai approved is in a state of suspension, the enterprise wants to approve can be in Shandong, Jiangxi, Zhejiang, Chongqing. Approved levy industry profit margin of 10%.

China from last year to the present, are adjusted to the value-added tax of small-scale taxpayers, in accordance with the 1% charge, reducing the loss due to the epidemic.