Tax cut for low-profit small enterprises

Low-profit small enterprises with an annual taxable income not exceeding 30,000 yuan ($4,393.7) can next year calculate their taxable income at 50 percent of the actual income and pay enterprise income tax at a rate of 20 percent, according to an announcement jointly made by the Ministry of Finance and the State Administration of Taxation recently.

Due to the financial crisis, 40 percent of small and medium-sized enterprises have gone into bankruptcy and 40 percent are still struggling for survival with only 20 percent not affected, according to the Shanghai Securities News.