Chinese Parliament Approves Tax Cuts For Businesses
Monday, March 20, 2017
China's legislature, the National People's Congress, on March 15 adopted proposals to ease taxes on businesses by CNY350bn (USD50.7bn).
The measures were announced by Chinese Finance Minister Xiao Jie on March 7. These include an increase to the threshold for the 50 percent reduction in the corporate tax rate to those businesses with a turnover of up to CNY500,000 (USD72,000) from CNY300,000.
In addition, for small and medium high-tech enterprises, the proportion of research and development expenses covered by the additional tax reduction policy is to be raised from 50 to 75 percent.
Jie had also disclosed that the Government is looking to simplify the value-added tax regime, which currently features four rates. It has been suggested that the top 17 percent rate could be removed, which would leave the 6, 11, and 13 percent rates in place.