Small and micro enterprises are collectively referred to as small enterprises, micro enterprises and family workshop enterprises. The concept of small and low-profit enterprises is slightly different from that of small and micro enterprises in taxation, which mainly includes three standards, from 20 19 10 to 2021012310, to engage in industries that are not restricted or prohibited by the state, and at the same time meet the annual taxable income of not more than 3 million yuan. According to the provisions of Article 28 of the Enterprise Income Tax Law of People's Republic of China (PRC), the enterprise income tax is levied at a reduced rate of 20% for small and low-profit enterprises that meet the requirements.

Article 8 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises: The central finance establishes the subject of small and medium-sized enterprises in the budget at the corresponding level and arranges special funds for the development of small and medium-sized enterprises.

The local people's governments at or above the county level shall, according to the actual situation, arrange special funds for the development of small and medium-sized enterprises in the financial budget at the corresponding level.

Article 9 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises: The special funds for the development of small and medium-sized enterprises are mainly used to support the construction of public service system and financing service system of small and medium-sized enterprises by means of funding, purchasing services and incentives.

The special funds for the development of small and medium-sized enterprises are inclined to small and micro enterprises, and the management and use of funds adhere to the principle of openness and transparency, and budget performance management is implemented.

Article 10 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises: The State establishes a fund for the development of small and medium-sized enterprises. The National SME Development Fund follows the principle of policy orientation and market operation, and is mainly used to guide and drive social funds to support small and medium-sized enterprises in the initial stage and promote entrepreneurial innovation.

Local people's governments at or above the county level may set up small and medium-sized enterprise development funds.

Measures for the administration of the establishment and use of SME development funds shall be formulated by the State Council:

Article 11 of the Law on the Promotion of Small and Medium-sized Enterprises in People's Republic of China (PRC): The state implements a tax policy that is conducive to the development of small and micro enterprises, and implements measures such as deferring, reducing or exempting enterprise income tax and value-added tax for qualified small and micro enterprises in accordance with regulations, simplifying tax collection and management procedures and reducing the tax burden of small and micro enterprises.

Article 12 of the Law of People's Republic of China (PRC) on the Promotion of Small and Medium-sized Enterprises, the state implements preferential policies for small and medium-sized enterprises, such as reducing administrative fees and reducing their burdens.