\u201cThere are three categories of entities eligible for the policy to halve the \u201dSix Taxes and Two Fees\u201d:Small-scale VAT taxpayers, small and low-profit enterprises, and self-employed individuals<\/strong>. The scope is broader than many people realize\u2014even if a business is already registered as a general VAT taxpayer, it can still benefit from a 50% reduction in the \u201csix taxes and two fees\u201d as long as it meets the criteria for a small, low-profit enterprise in the current year.<\/p>\n 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.<\/p>\n 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.<\/strong>The<\/p>\n Please note that the securities transaction stamp tax is explicitly excluded; be careful not to mistakenly include it when calculating securities-related transactions.<\/p>\n Include tax and fee reductions under the \u201cSix Taxes and Two Fees\u201d program as a standard item in annual tax health checks. Many cross-border e-commerce and foreign trade groups operate multiple entities simultaneously\u2014including 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.<\/p>\n 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.<\/p>\n 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.<\/p>","protected":false},"excerpt":{"rendered":" Resource Tax, Urban Maintenance and Construction Tax, Property Tax, Urban Land Use Tax, Stamp Tax, and Tax on the Occupation of Cultivated Land, plus the Education Surcharge and Local Education Surcharge, these \u201dsix taxes and two fees\u201d are levied at half the standard rate on small-scale VAT taxpayers, small and low-profit enterprises, and self-employed individuals, with the policy extended through December 31, 2027. This article outlines the eligible entities, combinations of preferential policies that can be stacked, and the three most common scenarios leading to tax return rejections during the filing process.<\/p>","protected":false},"author":10,"featured_media":18488,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,17,18,64],"tags":[2415,2416,2417,1786],"class_list":["post-18489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guide","category-allguide","category-recomguide","category-gf-tax-compliance","tag-2415","tag-2416","tag-2417","tag-1786"],"yoast_head":"\nWhich six taxes and two fees are being reduced?<\/h2>\n
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Overlay Rules: Explained in Three Sentences<\/h2>\n
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Three Situations That Are Likely to Result in a Return<\/h2>\n
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A Practical Suggestion<\/h2>\n