China will reduce taxes and fees on a larger scale to ease the burden on small and micro-sized businesses, it was revealed at a press conference in Beijing on Jan. 15.
In 2019, the country will conduct inclusive and structural tax cuts for small and micro-sized businesses based on its tax and fee cuts of 1.3 trillion yuan in 2018, said Assistant Finance Minister, Xu Hongcai, during the conference.
The threshold for small-scale taxpayers of value-added tax will be raised from 30,000 yuan to 100,000 yuan in monthly sales.
Criteria for small and low-profit enterprises will be relaxed, and more special measures will be rolled out. Any enterprise with less than 50 million yuan in total assets, less than 300 employees and a taxable income of less than 3 million yuan will be classified as a small and low-profit enterprise.
Local government will be allowed to reduce some local taxes including resources taxes, city maintenance tax, stamp duty, and urban land use tax, as well as an education surcharge for small-scale taxpayers by no more than 50 percent.
Technology startups will also be offered more preferential tax policies.