Small businesses will get a tax cut
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.