To encourage the development of small and micro-profit enterprises, the Business Tax in is also undergoing positive reforms. In this regard, this year has decided to roll out a new batch of tax-reduction policies. Related to this, a statement was released after the State Council executive meeting on Jan 9, 2019.

➡️ http://j.mp/SUBSCRIBE-to-EXPATRIGHTS-now
Official Accounts:

These policies include:

1. Substantial drops in business income tax:

1) The rate for those enterprises whose annual taxable income does not exceed 1 million yuan, is reduced to 25% of the original rate (20%). Therefore the actual tax rate will be 5%.

2) The rate for those enterprises whose annual taxable income falls between 1 million yuan to 3 million yuan, is reduced to 50% of the original one. Hence the actual tax rate will be 10%.

2. A considerable increase in the tax threshold:

For small-scale taxpayers ( including small and micro-profit enterprises etc.), the value-added tax (VAT) threshold will be increased from 30,000 yuan to 100,000 yuan in monthly sales. In this way, VAT will only be charged on the portion of monthly revenue which is above 100,000 yuan.

3. to allow local government to impose a reduction in local taxes and fees within 50% ranges.

Also, it is said the above-mentioned tax reduction policy will be tentatively valid for three years. But implementing rules haven’t been given out by related authorities yet.

Besides, another noteworthy situation is: it was stated that all social insurances premium shall be collected by the tax authority as of 1st of Jan, 2019, and fine for not paying or not pay in full of social insurance premium will be levied strictly according to the as early as August, 2018. Such a statement has caused extensive panic among enterprises which are worried about a severe penalty. However, according to resources from some provinces, only the pension for residents and public institutions employees will be collected by the tax authority, collection of pension for enterprises employees will maintain the status quo for the time being.

Source: Sophie Mao from ChinaLawHelp.com

http://www.ExpatRights.org
➡️ http://j.mp/SUBSCRIBE-to-EXPATRIGHTS-now

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>