China to Set Up New E-Commerce Zones and Support Processing Trade and Small Firms

At its executive meeting on 7 April, the State Council decided to set up another 46 comprehensive pilot zones for cross-border e-commerce on top of the 59 existing ones to promote cross-border e-commerce business. Export goods of these zones for cross-border e-commerce retail business will enjoy such support policies as exemption of value-added and consumption taxes, while corporate income tax of relevant firms in the zones is levied on assessment basis in accordance with regulations. 

The meeting also stressed the need to co-ordinate domestic and foreign trade, help processing trade enterprises tackle difficulties, and promote efforts to stabilise investment and employment. In order to enhance inclusive financial service for micro and small firms and individually-owned businesses, the meeting decided to extend some of the expired preferential tax policies to the end of 2023, including exemption of value-added tax on the interest income obtained by financial institutions from granting loans of Rmb1 million or below to micro and small firms, individually-owned businesses and farmers.

It was also decided that given the serious situation of the global pandemic, the 127th China Import and Export Fair (Canton Fair) will be hosted online in mid- to late June.

Source: State Council