Small businesses will get a tax cut

China Daily (Canada) - - NEWSCAPSULE -

China’s small businesses are get­ting a tax cut amid wide­spread ex­pec­ta­tions that firstquar­ter eco­nomic growth was the weak­est since 2009.

En­ter­prises with an­nual tax­able in­come of less than 100,000 yuan ($16,000) will have a cor­po­rate in­come tax rate of 20-per­cent in­stead of 25 per­cent, ac­cord­ing to the Min­istry of Fi­nance. The cut is ef­fec­tive un­til De­cem­ber 31, 2016.

Up to 75 per­cent of businesses in China are small and mi­cro. They con­trib­ute around half of the coun­try’s to­tal taxation. It’s es­ti­mated that more than 6 mil­lion small businesses will ben­e­fit from the cut.

The re­duc­tion is one of a se­ries of pro-growth mea­sures promised by Pre­mier Li Ke­qiang last week.

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