China to Take 7 Major Measures to Cut Taxes for SMEs and High-Tech Firms

Following China government’s objective to ease business for foreign investors and businesses, new policies will take place in order to alleviate financial pressure on small & medium companies in addition to high-technology firms. It was announced that 7 measures will be applied nationwide starting this year, after a successful test period in eight zones that included Beijing, Shanghai, & Suzhou industrial park. In the long term, such measures are expected to reduce the tax burden of more than 60 billion RMB (equal to 9.4 billion USD) for SMEs and high-tech firms in China.

The 7 Actions Plan

These are the 7 specific actions that will be implemented to help encourage the growth of high tech, small, and mid-size businesses through tax relief:

1.Raise the per-unit value of newly purchased R&D instruments and equipment that is eligible for a one-time tax deduction from 1 million RMB (157,000 USD) to 5 million RMB (784,000 USD).

This article was written by  and published on PTL Group. Original Post:      

View Original Article here