China’s State Council decided on August 19 to improve and extend the tax breaks
Available for small and micro enterprises, noting that these firms are the main source
of employment and innovative growth in the economy.
The council agreed to increase the threshold for small companies to benefit from a lower
Corporate tax rate to those with annual taxable incomes of up to RMB300.000 (USD46’900.00)
With effect from October 1 this year, the previous threshold was RMB200’000.
The tax break, which was extended earlier this year to the end of the year of 2017, allows
Eligible companies to reduce their taxable income by 50 percent.
In addition, the exception from the imposition of value – added tax and business tax granted
To businesses with monthly sales of up to RMB30’000 has been extended to December 31,
- It was originally due to expire at the end of 2015.
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