Small-scale VAT taxpayers have obtained taxable sales income, and their tax obligation occurred before March 3, 20221,and VAT invoices have been issued at the rate of 3% or 1%. If red-ink invoices are required for sales discounts, suspensions, returns, etc., red-ink invoices shall be issued at corresponding rates; If there is an error in invoicing and it needs to be reissued, the red-ink invoice shall be issued according to the corresponding collection rate, and then the correct blue-ink invoice shall be reissued.

From 2022, the tax rate of small-scale taxpayers will be changed from 3% to 3% and 5%. The original business tax rate of construction industry, culture and sports industry is 3%, the business tax rate of financial industry, sales of real estate and transfer of intangible assets is 5%, and the business tax rate of entertainment industry is 5%~20%.

According to the provisions of Article 28 of the Enterprise Income Tax Law of People's Republic of China (PRC), enterprise income tax shall be levied at a reduced rate of 20% for small and low-profit enterprises that meet the requirements. High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.

Article 2 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Implementing the Inclusive Tax Relief Policy for Small and Micro Enterprises, the portion of the annual taxable income of small and micro-profit enterprises that does not exceed 6,543,800 yuan shall be included in the taxable income at a reduced rate of 25%, and the enterprise income tax shall be paid at a reduced rate of 20%; If the annual taxable income exceeds 6,543,800 yuan but does not exceed 3 million yuan, it will be included in the taxable income at a reduced rate of 50%, and enterprise income tax will be paid at a reduced rate of 20%.