Eligible small and low-profit enterprises are levied a corporate income tax at a reduced rate of 20%.

No.

The original statutory tax rate is 25%. In order to take care of the development of qualified small and low-profit enterprises, the state stipulates that qualified small and low-profit enterprises shall levy corporate income tax at a reduced rate of 20%.

It means calculating and paying corporate income tax at a tax rate of 20%, not 5% as mentioned in the title.

Tax reduction requirements for small and micro enterprises: When making annual settlement declarations, enterprises should truthfully fill in relevant indicators such as their industry, total assets for the year, number of employees, and annual taxable income. The competent tax authorities An audit will be conducted. Enterprises that are determined to meet the conditions of small and low-profit enterprises can calculate and pay corporate income tax at a tax rate of 20% for this year's final settlement declaration and next year's prepayment declaration.

Extended information:

Corporate income tax reductions and exemptions include:

(1) High-tech enterprises in high-tech industrial development zones approved by the State Council are entitled to a mortgage reduction of 15% % tax rate; newly established high-tech enterprises are exempt from income tax for 2 years starting from the year of production.

(2) For rural industries that serve pre-production, mid-production and post-production services for agricultural production, that is, rural agricultural technology extension stations, plant protection stations, water pipe stations, forestry stations, animal husbandry and veterinary stations, aquatic products stand.

The income derived from the technical services or labor services provided by vitality stations, weather stations, farmers’ professional technical associations, and professional cooperatives, as well as the income derived from the technical services or labor services provided by other various urban institutions The income generated by the company is temporarily exempt from income tax.

Serves scientific research units and colleges and universities in the transfer of technological achievements, technical training, and technical consultation in various industries. Technical service income obtained from technical services and technical contracting is temporarily exempt from income tax.

For newly established independent accounting enterprises or business units engaged in the consulting industry (including technology, law, accounting, auditing, taxation and other consulting industries), information industry, and technical service industry, starting from the date of opening , exempt from income tax for 2 years.

For newly established enterprises or business units engaged in transportation, postal and telecommunications industries with independent accounting, income tax will be exempted from income tax in the first year from the date of opening, and income tax will be halved in the second year.

For newly established independent accounting companies engaged in public utilities, commerce, material industry, foreign trade, tourism, warehousing, resident services, catering industry, education and cultural undertakings. Enterprises or operating units in the health sector may, upon approval by the competent tax authorities, enjoy a reduction or exemption from income tax for two years from the date of business opening.

(3) In addition to the products stipulated in the original design, the enterprise comprehensively utilizes the resources generated in the production process of the enterprise and the resources in the "Comprehensive Utilization Catalog" as the main raw materials for the production of products, as well as the enterprise's use of Income from bulk coal gangue, slag and fly ash used as main raw materials to produce building materials products outside the enterprise shall be exempt from income tax for 5 years from the date of production and operation.

Enterprises established to process and utilize resources included in the "Catalogue of Comprehensive Utilization of Resources" abandoned by other enterprises, with the approval of the competent tax authorities, may have income tax reduced or exempted for one year.

(4) New enterprises established in the "old, young, border and poor" areas determined by the state can have income tax reduced or exempted for 3 years with the approval of the competent tax authorities.

(5) Income from technology transfer by enterprises and institutions, as well as income from technical consulting, technical services, and technical training related to technology transfer that occur during the technology transfer process, and the annual net income is less than 300,000 yuan , temporarily exempt from income tax.

(6) If an enterprise encounters serious natural disasters such as wind, fire, water, earthquake, etc., with the approval of the competent tax authority, the income tax can be reduced or exempted for one year.

Baidu Encyclopedia--Corporate Income Tax