The Law on Promotion of Small and Medium-Sized Enterprises was promulgated in 2002 and amended in 2017 respectively. The latest revision entered into force on January 1, 2018.

There are 61 articles in total.

The key points are as follows:

1.The state regards the development of small and medium-sized enterprises as the long-term development strategy.

2.The governments shall arrange special funds for the development of small and medium-sized enterprises in the financial budget, and may may set up small and medium-sized enterprises development funds.

3.The state implements the tax policies that are conducive to the development of micro and small enterprises. The measures for postponement, reduction, and exemption of enterprise income tax and value-added tax shall be implemented for qualified micro and small enterprises under the applicable provisions, the taxation administration procedures shall be simplified, and the tax burden on micro and small enterprises shall be reduced.