China Looks to Incentivise Lending to Small Businesses
27 November 2017
Small and micro enterprises are set to find it easier to secure funding following the announcement of a joint initiative by the Ministry of Finance and the General Administration of Taxation. This will see all of the accrued interest being VAT-exempt on all loans (below a certain threshold) made by financial institutions to farmers, small enterprises, micro enterprises and individually-owned businesses from 1 December 2017 to 31 December 2019. Additionally, any loan agreements concluded between financial institutions and small and micro enterprises during the period 1 January 2018 to 31 December 2020 will also be exempt from stamp duty.
For further details (in Chinese), please refer to the following link: