To enhance the support of small and micro-sized enterprises, the Ministry of Finance and the State Administration of Taxation issued the Circular on Exempting Small and Micro-sized Enterprises from the Levy of Relevant Government Funds (Cai Shui [2014] No. 122) (hereinafter the "Circular") to exempt the levy of relevant government funds on the following small and micro-sized enterprises. The Circular is specifically highlighted as follows:

  1. A small or micro-sized enterprise refers to an enterprise meeting the requirements under Article 92 of the Regulation of the People's Republic of China on the Implementation of Enterprise Taxes with respect to the annual taxable income, number of employees and total asset.
  2. During January 1, 2015 through December 31, 2017, a small or micro-sized enterprise which pays its taxes on a monthly basis with its monthly sales or business volume not exceeding RMB30,000 ( RMB30,000 or less) or which pays its taxes on a quarterly basis with its sales or business volume not exceeding RMB90,000 ( RMB90,000 or less), educational surcharges, local educational surcharges, water conservancy funds and cultural enterprise development funds shall be exempt.
  3. A small or micro-sized enterprise whose arrangements for the employment of the disabled have not met the required percentage within three years after its date of industrial or commercial registration and which has no more than 20 (20 or less) incumbent employees shall be exempt from the levy of the employment guarantee fund for the disabled.