China is cutting taxes again. This time, small and micro enterprises and high-tech firms will enjoy a RMB 60 billion (US$9.5 billion) tax cut. With the cuts, the Chinese government wants to reduce the cost for innovation and entrepreneurship, energize small and micro businesses, and spur job creation.
Earlier, China reduced its value-added tax (VAT) rates as part of an RMB 400 billion (US$64 billion) tax cut package. That package was part of a program of RMB 800 billion (US$126 billion) worth of taxes for businesses and individuals in 2018.
Asia Briefing, a subsidiary of Dezan Shira & Associates, reports that the latest tax cuts for high-tech firms come as Chinese President Xi Jinping has vowed to redouble efforts to develop China’s domestic tech capabilities – namely through the Made in China 2025 program – amid trade tension with the US.
Further reading on china-briefing.com