China is offering more small businesses a tax break. In an effort to address the pressure on economic growth, the Finance Ministry and the State Administration of Taxation (SAT) will give more companies a tax cut of 50 per cent.
In 2011 it was decided that any company with an annual taxable income under 60,000 yuan will have its business income tax halved during 2012-2015. Under the new legislation the tax break is extended to any company with annual taxable income under 100,000 yuan (about $16,000) until the end of 2016.
The move is aimed at promoting economic growth and creating jobs, the Ministry and the SAT said in a statement. By the end of 2013, there were about 11.7 million small and micro companies in China, accounting for 76.6 percent of the total number of firms in the country.