Core Viewpoint - Companies must file tax returns even if there is no business income, and this includes zero reporting to maintain compliance with tax regulations [4][6]. Tax Reporting Requirements - According to the Tax Collection and Administration Law of the People's Republic of China, taxpayers are required to submit tax returns and financial statements truthfully within the specified deadlines [4]. - Zero reporting must include filling out all applicable items on the tax return as "0" and submitting it on time [6]. Consequences of Non-Compliance - Failure to submit tax returns on time can negatively impact a company's credit rating and may result in fines [6]. - Companies must continue to submit financial statements even during periods of zero income [6]. - Long-term zero reporting without valid reasons may lead to increased scrutiny from tax authorities [6]. Deductible Advertising and Promotion Expenses - Companies can deduct advertising and promotional expenses up to 15% of their annual sales revenue, with any excess being carried forward to future tax years [11]. - For specific industries like cosmetics, the deductible limit is increased to 30% of sales revenue [11]. - Tobacco companies are not allowed to deduct advertising and promotional expenses from taxable income [12]. Tax Credit Rating System - The tax credit rating system categorizes companies into five levels: A, B, M, C, and D, based on their annual evaluation scores [14]. - Level A indicates a score of 90 or above, while level D indicates a score below 40 or serious credit violations [14].

Group 1 - The article discusses the distinction between small-scale taxpayers and small micro-profit enterprises regarding VAT benefits, emphasizing that only small-scale taxpayers can enjoy VAT reductions [3][7]. - Small-scale taxpayers who are also classified as small micro-profit enterprises can benefit from VAT exemptions if their monthly sales do not exceed 100,000 yuan or quarterly sales do not exceed 300,000 yuan [4]. - If a small-scale taxpayer exceeds the sales threshold, they will still benefit from a reduced VAT rate of 1% instead of the standard 3%, resulting in significant savings [5]. Group 2 - General taxpayers classified as small micro-profit enterprises do not qualify for the same VAT benefits and must calculate VAT based on the standard method of output tax minus input tax [6]. - The article clarifies that the VAT benefits are specifically tied to the small-scale taxpayer status, not directly to the small micro-profit enterprise classification [7]. - The policy basis for these VAT reductions is outlined in the announcement from the Ministry of Finance and the State Taxation Administration [8].