200 Billion Tax Cuts for Small&Micro Businesses! 重磅|小微企业减负2000亿
First,the eligibility of small and low-profit businesses to benefit from preferential income tax will be significantly expanded. These businesses with an annual taxable income of less than 1 million yuan and between 1m to 3m yuan will be eligible to have their tax calculated based on 25 percent or 50 percent of their taxable income.
This is expected to reduce their tax burden to about 5 to 10 percent. The adjusted tax incentives are expected to cover 95 percent of corporate tax payers, 98 percent of which will be private businesses.
Second, the VAT threshold on small-scale taxpayers will be raised from 30,000 yuan to 100,000 yuan of monthly sales.
Third, provincial-level governments will be given the authority to cut taxes up to 50 percent for small-scale VAT taxpayers under several local tax items, including resources tax, as well as education and local education surcharges.
Forth, The scope of tax incentives applied to investment in high-tech start-ups will be expanded to give more tax breaks to venture capital firms and angel investors investing in these businesses.
Fifth, central government finance will provide stronger general transfer payment to local authorities to make up for possible funding gaps at local levels caused by large-scale tax and fee cuts.
The above tax incentives will cover all taxes incurred since Jan 1, and will be effective for a tentative three years, which is estimated about 200 billion yuan tax cuts for small and micro businesses.