China Announces Further Tax Break For Small Business
In an effort to underpin China’s economic growth rate, the State Council meeting on April 2, which was chaired by Premier Li Keqiang, agreed a package of measures that included additional tax cuts for micro and small-sized enterprises.
Micro and small-sized enterprises are currently defined as those with an annual taxable income of less than RMB60,000 (USD9,650). From the beginning of 2012, China reduced their taxable income by 50 percent to help smaller firms manage with rising costs.
Within the new measures, the State Council is looking at raising the RMB60,000 upper limit, while the tax cut, originally scheduled to end on December 31, 2015, will be extended for a further year to the end of 2016.
Other elements in the package included increased infrastructure investment, particularly for the laying of new railway lines and the renovation and rebuilding of rundown urban areas.
Source: taxnews
