China: tax support SME

Some further tax preferential policies on small and micro enterprises were passed on the executive meeting of the State Council of the PRC dated 19 August 2015. According to the meeting, existing tax preferential policies shall be still effective, meanwhile two new policies shall be effective. One is that from 1 October 2015 to 31 December 2017, the scope of small and micro enterprises which are entitled to enjoy the half-reduction in enterprise income tax is extended from those with annual taxable income of RMB 200,000 (inclusive) to those with annual taxable income of RMB 300,000 (inclusive); the other is that small and micro enterprises, individual businesses, and other individuals with monthly turnover of RMB 20,000 to 30,000 shall be entitled to exemption in VAT, business tax for a time period from 31 December 2015 to 31 December 2017.

The aforementioned preferential policies are further support on small and micro enterprises. They provide small and micro enterprises with ongoing encouragement in their development, and also provide foreign individuals and corporations with more  favorable investment environment in setting up new companies or branches in China. For more information on small and micro enterprises, please contact Pan-China CPAs LLP, and we will provide you with customer-tailored tax services.

If you have any questions, please feel free to contact us.

Gong Jian, Tax Services, Pan-China
P +86 571 8988 2187

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