According to statistics, in the first quarter, the total tax reduction and exemption of China’s small and micro enterprises (SME) reached 24 billion yuan, including 2.16 million SMEs, or over 90% of the total, enjoying 50% reduction for income tax, or 5.1 billion yuan in amount, and 27 million SMEs and individual businesses enjoying temporary exemption of VAT and business tax, or 18.9 billion yuan in amount.   

 

From October 2014, VAT small-scale taxpayers and business tax taxpayers with monthly sales amount below 30,000 yuan were temporarily exempted from VAT and business tax, said the official from the State Administration of Taxation. This year, tax preferences for SMEs are further strengthened. The annual leviable income for SMEs with 50% reduction in enterprise income tax is lifted from 100,000 yuan to 200,000 yuan. More SMEs will enjoy the tax preference.

 

Tax preference aims to support SMEs’ development, said the director of Income Tax Department of State Administration of Taxation. By means of expanding preference scope and simplifying the procedures, more SMEs will enjoy 50% tax reduction, laying a sound foundation for the startup and innovation campaign.

 

Source: Nanfang Daily, May 5, 2015