INCOME TAX

Revised Individual Income Tax Law to Come into Force in January 2019

13 September 2018

New mainland income tax law for residents and non-residents are to come into force as of 1 January 2019. More

Small Business Income Tax Threshold Raised to RMB1 Million

06 August 2018

The annual taxable income threshold of low-profit small and micro businesses has been raised from RMB500,000 to RMB1 million for the period January 2018 and 31 December 2020, according to a joint statement by the Ministry of Finance and the State Administration of Taxation. More

hktdc research

Upper Annual Tax Limit Raised for Low-Profit Businesses

28 June 2017

The upper limit of annual taxable income of low-profit enterprises is to be raised from RMB300,000 to RMB500,000. In the case of enterprises with an annual taxable income of RMB500,000 or below, taxable income will be calculated at the reduced rate of 50%, with corporate income tax payable at a rate of 20%. More

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State Council Updates VAT, Investment Incentives and Tax Deductions

25 April 2017

As part of continued moves to replace business tax with value-added tax (VAT), while streamlining the overall VAT structure, as of 1 July 2017, the four existing VAT brackets will be reduced to just three - 17%, 11% and 6%. The current 13% tax bracket is to be abolished, with the tax rate for such products as agricultural items and natural gas reduced from 13% to 11%. More

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More Preferential Income Tax for Low-Profit Small Businesses

11 September 2015

The Ministry of Finance and the State Administration of Taxation issued the Circular on Further Expanding the Scope of Enterprise Income Tax Preferential Policy for Low-Profit Small Enterprises (Cai Shui No. 99 [2015]) in September 2015 to help low-profit small businesses play a bigger role in promoting economic development. More

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New Tax Measures for Individually-Owned Businesses Take Effect

12 January 2015

The State Administration of Taxation recently issued the revised Measures for the Calculation of Individual Income Tax on Individually-Owned Businesses to ease the tax burden of sole proprietorships, which took effect on 1 January 2015. More