Tett Ltd is a qualified software enterprise set up in Chengdu. Hence, it also enjoys the tax incentive of the Central and Western Region. It started benefiting from the enterprise income tax (EIT) incentive on software enterprise from 2015. Tett Ltd’s taxable profit in 2017 is RMB1,200,000.
What is the minimum amount of enterprise income tax (EIT) payable by Tett Ltd?
RMB150,000 (1,200,000 x 12·5%)
Tutorial note: Can only enjoy one tax incentive and the EIT rate as a software enterprise is 12·5%.