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China reduces small business tax bill by 3.7b yuan

(Xinhua) Updated: 2014-10-04 14:32

BEIJING -- Tax breaks for small businesses in China amounted to more than 3.7 billion yuan ($600 million) in the first half of the year.

Nearly 74 percent of small companies qualify for a 50 percent cut in business income tax until Dec. 31, 2016, according to the State Administration of Taxation (SAT).

The value added tax rate for small businesses has also been reduced to 3 percent from previous rates of 6 percent and 4 percent. A stamp tax on bank loans to small companies and administrative charges, including registration and license fees, have been lifted.

The State Council decided that from Oct 1, 2014 to Dec 31, 2015, companies reporting monthly sales below 30,000 yuan will be exempt from VAT and turnover tax.

China has expanding preferential tax policies for small companies and reduced their tax burden to boost economic growth and employment. Nearly 80 percent of urban jobs are provided by small companies.

China reduces small business tax bill by 3.7b yuan
China reduces small business tax bill by 3.7b yuan
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