Core Viewpoint - The article discusses the tax incentives for small and micro enterprises in China, particularly focusing on the reduction of corporate income tax for eligible small profit enterprises, which is set to continue until December 31, 2027 [1][2]. Group 1: Tax Incentives - Small and micro enterprises can benefit from a reduced corporate income tax rate, where the taxable income is calculated at 25% of the actual amount, and the tax rate applied is 20% [1]. - The definition of small profit enterprises includes those with an annual taxable income not exceeding 3 million yuan, a workforce of no more than 300 employees, and total assets not exceeding 50 million yuan [1]. Group 2: Eligibility Criteria - To qualify as a small profit enterprise, the business must operate in non-restricted and non-prohibited industries, and the average values for workforce and total assets must be calculated based on quarterly averages [1]. - The calculation for quarterly averages is defined as: Quarterly Average = (Beginning Value + Ending Value) ÷ 2, and the Annual Quarterly Average is the sum of all quarterly averages divided by 4 [1].