The State Administration of Taxation recently issued the Announcement about Further Expanding the Scope of Preferential Income Tax Policies for Small Low-Profit Enterprises.
According to the announcement, from January 1, 2018 until December 31, 2020, eligible small low-profit enterprises can enjoy the preferential income tax policy as long as their taxable income is no more than one million yuan. They shall pay income tax with 50% of taxable income and tax rate at 20%.
If an enterprise was not eligible for the tax policy in the previous tax year, or it is a newly-established small business, and it's expected to be eligible for the tax policy at the current tax year, it can enjoy the preferential tax policy as long as its profit or taxable income for the current year is estimated to be no more than one million yuan.