The State Taxation Administration and the Ministry of Finance jointly released on October 29, 2021 the Announcement on Matters concerning Deferred Payment of Some Fourth Quarter Taxes by Micro, Small and Medium-sized Firms in Manufacturing, to be implemented from November 1, 2021.
According to the document, the said enterprises may defer payment of part of their taxes and fees for the fourth quarter of 2021, including enterprise income tax, personal income tax (excluding withholding), domestic value-added tax, domestic consumption tax and additional urban construction tax, education fee and local education surcharge. Specifically, a medium-sized manufacturing enterprise, which is defined as having annual sales between 20 million yuan and 400 million yuan, can defer payment of 50% of all its taxes and fees, while a micro or small enterprise, which is defined as having annual sales of below 20 million yuan, can defer payment of all its taxes and fees.
For the purpose of this Announcement, the annual sales of micro, small and medium-sized manufacturing enterprises shall be determined according to the following methods:
For enterprises that have been established for one year or more by September 30, 2021, the annual sales shall be determined based on the sales for the period from October 2020 to September 2021;
For enterprises that have been established for less than one year by September 30, 2021, the annual sales shall be determined based on the sales for the period until September 30, 2021/actual months of operation × 12 months' sales;
For enterprises established on or after October 1, 2021, the annual sales shall be determined based on the sales for the first filing period/actual months of operation × 12 months' sales.