Core Viewpoint - The article discusses the current preferential tax policies for small and micro enterprises, highlighting the tax rate reductions and eligibility criteria for these businesses [2][3]. Summary by Sections Current Tax Policies - Small and micro enterprises can enjoy a reduced corporate income tax rate of 20% instead of the standard 25%, applicable until December 31, 2027 [2]. - The preferential tax policy is not limited by the method of taxation; both accounting and fixed taxation methods can qualify [2]. Eligibility and Application Process - Enterprises must self-assess and declare their eligibility for the small and micro enterprise tax benefits by filling out the relevant sections of the corporate income tax return [3]. - Required documentation includes: 1. Explanation that the business does not belong to restricted or prohibited industries 2. Calculation process for the number of employees 3. Calculation process for total assets - The number of employees includes both those with labor contracts and those provided through labor dispatch [3]. Prepayment and Year-End Settlement - Enterprises can enjoy the small and micro enterprise tax benefits during interim prepayments if they meet the criteria at that time [3]. - If a business benefits from the small and micro enterprise tax policy during prepayment but does not meet the criteria during year-end settlement, it must pay the tax difference [3]. Changes in Tax Reporting - The annual corporate income tax return has been optimized, with the cancellation of the A107040 form, which previously reported tax reductions [7][8]. - Small and micro enterprises must now report tax benefits directly on the main tax return form [8]. Branch Offices and Tax Benefits - Enterprises with non-legal person branch offices must aggregate the number of employees and total assets from both the main office and branches to determine eligibility for small and micro enterprise benefits [11]. Interaction with Other Tax Benefits - Small and micro enterprise tax benefits cannot be combined with other preferential tax policies, such as those for high-tech enterprises, but businesses can choose the more favorable option [16][18].