China Halves Corporate Tax For Smallest Businesses
by Mary Swire, Tax-News.com, Hong Kong
15 April 2021
Chinese authorities have announced enhanced temporary tax breaks for small businesses.
In announcement no. 12 of 2021, released on April 9, 2021, the Chinese Ministry of Finance and the State Administration of Taxation announced that small businesses will be subject to 20 percent corporate tax on just an eighth of their taxable income. Under the policy, these businesses, whose income must not exceed CNY1m, will be liable to an effective rate of just 2.5 percent.
The rate of personal income tax on sole traders has also been halved, also on the first CNY1m of taxable income.
The policy will apply from January 1, 2021, until the end of 2022.
To see today's news, click here.
Tax-News Reviews
A review and forecast of Cyprus's international business, legal and investment climate.
A review and forecast of Malta's international business, legal and investment climate.
A review and forecast of Jersey's international business, legal and investment climate.
A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »
Network Blogs and Features
- Corporate Taxes take Center Stage »
- Reporting, Rule Changes and Reversals… »
- Buying a Home at Auction: Key Questions and Considerations »
- Compliance Concerns Under Consideration »
- Securing Finance for Development Projects »
- Tax Headlines on Headline Taxes »
- How to start a Corporation in California? »
- VAT's (not) All, Folks! »
- Cyprus Trusts: Outline and Practical Approach »
- Compliance on the Cards »