China Company Income Tax Calculator — Small/Micro (2.5%/5%/25%), R&D Super-Deduction, 5-Year Loss Carry-Forward

Real-world use cases

• Sanity-check whether you cross the ¥3M small-micro line this year

  You run a small SaaS, projecting ¥4M revenue and ¥2.6M total costs. Accounting profit is ¥1.4M — well under ¥3M, so you assumed small-micro. Plug it in: revenue 4,000,000, costs + opex 2,600,000, last-year loss 0, headcount 22, assets ¥6M. The calculator confirms eligibility on all three lines and shows tax = 100,000 × 2.5% + 300,000 × 5% = ¥17,500 effective. Versus the 25% general rate on ¥1.4M (¥350k) you save ¥332k. Now you have a number to compare with the cost of NOT taking a year-end bonus that would push you over ¥3M taxable.

• Decide whether to claim 高新 status or stay on 小微

  You qualify for both high-tech enterprise (15% flat) and 小微 (2.5% / 5%). You project ¥2.8M taxable income. Toggle the "high-tech" preset, then toggle back to small-micro. High- tech gives 15% × 2.8M = ¥420k. Small-micro gives 25k + 90k = ¥115k. Small-micro wins by ¥305k at this income level. Above ¥3M the high-tech advantage flips. The calculator's "if both apply, take the lower" rule matches 国税总局 guidance, so you can use the side-by-side number in your board pack without manually computing each.

• Quantify the R&D super-deduction before approving the budget

  Your engineering lead wants to upgrade a CV pipeline, ¥800k incremental R&D spend. You're a manufacturer with ¥40M revenue and ¥4M projected pre-deduction taxable income. Without the project: tax = ¥1M (25% × 4M). With the project, R&D is deducted twice → taxable income = 4M − 1.6M = 2.4M → tax = 600k. Net of the ¥800k cash spend, the engineering upgrade "really costs" 800k − 400k = ¥400k after-tax. This flips a lot of borderline R&D approvals from "no" to "yes".

• Use loss carry-forward to drop into the 小微 bracket

  You had a rough 2024 (loss ¥1.2M) and 2025 came in at ¥3.8M accounting profit. You assumed 25% on ¥3.8M = ¥950k. Plug in last-year loss 1,200,000. The calculator subtracts losses first → taxable income drops to ¥2.6M, which now qualifies for small-micro (under ¥3M). Tax = 25k + 80k = ¥105k. The rule "lose your losses by not declaring them" is a real phenomenon — every year of carryforward is mandatory FIFO and unused tail-year losses simply expire at year 5.

• Compare five preset scenarios before quoting a new corp structure

  A client is choosing between sole proprietorship, a tech startup, a manufacturer, a 高新 entity, or a large general taxpayer. Click each preset in turn and watch the effective tax-on-revenue ratio land at 0.5–2% for the small ones, 3–5% for high-tech / manufacturer at scale, and 15–25% for the large general taxpayer. The 10x spread between scenarios is why structure choice at incorporation is worth so much more than later-stage tax planning. Use this as the conversation opener before you discuss valuation.

Common pitfalls

• Confusing "annual revenue ≤ ¥3M" with "annual taxable income ≤ ¥3M". The small-micro line is on taxable income (after costs, expenses, R&D super-deduction and loss carry-forward), not on top-line revenue. A company with ¥10M revenue and ¥2.5M taxable income still qualifies; a company with ¥3M revenue and ¥3.2M taxable income (negative cost adjustments) does not.

• Treating the ¥3M line as a gradient. There is no "first ¥3M at the low rate, anything above at 25%" — once you tip over ¥3M, ALL taxable income is taxed at 25%. Pushing income from ¥2.99M to ¥3.01M can cost ¥725k in tax. Year-end bonus timing and accelerated depreciation are real levers here.

• Forgetting that small-micro requires ALL THREE thresholds simultaneously. ¥2.9M taxable + 301 employees fails. ¥2.9M taxable + 50 employees + ¥55M assets fails. Headcount and assets are often the silent disqualifier for asset-heavy or labor-heavy SMEs. The calculator highlights which of the three lines you failed so you know exactly what to fix.

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