The Ministry of Finance and the State Administration of Taxation (SAT) jointly issued a notice on 2 December 2009 (Cai Shui [2009] No. 133) announcing a tax reduction for low-profit enterprises in 2010, to support SMEs during financial crisis. Pursuant to the Notice, the enterprises with an annual taxable income less than CNY 30,000 may deduct 50% of their taxable income in arriving…