Which entities are eligible for

“There are three categories of entities eligible for the policy to halve the ”Six Taxes and Two Fees”:Small-scale VAT taxpayers, small and low-profit enterprises, and self-employed individuals. The scope is broader than many people realize—even if a business is already registered as a general VAT taxpayer, it can still benefit from a 50% reduction in the “six taxes and two fees” as long as it meets the criteria for a small, low-profit enterprise in the current year.

This is one of the biggest misconceptions regarding the policy. Many companies automatically forfeit this tax exemption once they become general taxpayers, which effectively results in them paying more tax unnecessarily.

The policy will remain in effect through December 31, 2027. Specific scope of application and proceduresThe current announcements issued by the Ministry of Finance and the State Administration of Taxation shall prevail.The

Which six taxes and two fees are being reduced?

• Resource Tax (excluding the Water Resource Tax)
• Urban Maintenance and Construction Tax
• Property Tax
• Urban Land Use Tax
• Stamp Tax (Excludes securities transaction stamp tax)
• Agricultural Land Occupancy Tax
• Education Surcharge
• Local Education Surcharge

Please note that the securities transaction stamp tax is explicitly excluded; be careful not to mistakenly include it when calculating securities-related transactions.

Overlay Rules: Explained in Three Sentences

1. They can be combined. The 50% reduction in the "six taxes and two fees" can be combined with other universal tax incentives during the same period—such as VAT reductions for small-scale taxpayers and corporate income tax incentives for small and low-profit enterprises—without any conflict between them.
2. The 50% reduction means ”a further 50% reduction on top of other benefits already received.” If a particular tax already qualifies for other exemptions or reductions (such as other stamp tax incentives for small and micro enterprises or urban land use tax exemptions for employing people with disabilities), the tax liability is typically reduced by half based on the amount remaining after those incentives have been applied. Specific order of applicationSubject to current policy provisionsThe
3. Apply and receive benefits immediately; no approval is required. Generally, the approach involves self-reporting and retaining documentation for future reference; however, it is important to ensure that the retained materials support your own assessment.

Three Situations That Are Likely to Result in a Return

• There is no basis for determining the subject. The classification of small, low-profit enterprises is based on three criteria: annual taxable income, number of employees, and total assets. The system automatically compares these figures. If a company’s self-assessment differs from the system’s determination, it will be notified of this discrepancy when filing its tax return.
• The inter-period transition wasn't done correctly. When a business transitions from a small-scale taxpayer to a general taxpayer, or from a general taxpayer back to a small-scale taxpayer, during the middle of the fiscal year, the period during which it is eligible for that status must be determined based on the effective date of the registration; it cannot be calculated broadly on a full-year basis.
• Duplicate tax exemptions for the same tax category. If you have already received a full tax exemption under other policies, applying a 50% reduction on top of that serves no practical purpose; however, the system may still flag this as an anomaly, requiring a manual explanation.

A Practical Suggestion

Include tax and fee reductions under the “Six Taxes and Two Fees” program as a standard item in annual tax health checks. Many cross-border e-commerce and foreign trade groups operate multiple entities simultaneously—including platform store companies, supply chain companies, overseas warehouse operators, and companies based in Hong Kong or overseas. Since the taxpayer status and scale metrics of these entities vary, reviewing them one by one often reveals instances where tax relief has been overlooked or incorrectly claimed.

For example, a supply chain company with an annual taxable income of 2.8 million yuan, 60 employees, and total assets of 40 million yuan meets the criteria for a small, low-profit enterprise. Even if it is registered as a general VAT taxpayer, it may still file for a 50 percent reduction in property tax and stamp tax; In contrast, entities within the same group with an annual taxable income exceeding 3 million yuan must pay the full amount for the same tax type. The difference in tax burdens between these two entities within the same group stems precisely from these three indicators.

Qicaiying can assist corporate groups in reviewing the applicability of tax incentives across multiple entities, conducting eligibility assessments for small-scale taxpayers and small, low-profit enterprises, and verifying their incentive claims. Specific policies are subject to the announcements issued by the Ministry of Finance and the State Taxation Administration.