China extends, improves tax relief policies for businesses

Tax payers get tax refunds for small and micro enterprises in Tianjin, north China, April 1, 2022. [Xinhua]

BEIJING -- China has extended and improved a raft of preferential tax and fee policies, according to multiple statements issued by the Ministry of Finance and the State Taxation Administration based on decisions made at a State Council meeting last week.

For low-profit small enterprises, the portion of their annual taxable income that does not exceed 1 million yuan (about 145,530 U.S. dollars) will be calculated as 25 percent of the original amount from 2023 to 2024. For self-employed individuals under the same condition, their corresponding individual income tax payments will be halved.

For land used by logistics companies for bulk commodity storage, the land-use tax rate will be halved from 2023 to 2027.

To better support sci-tech innovation, the country will further improve its policy on the pretax deduction of research and development expenses of enterprises starting Jan. 1, 2023.

Moreover, to support micro and small enterprises and relieve the burden on businesses, the preferential policies on employment security funds for disabled people will continue to take effect until the end of 2027.

"The policies are conducive to further stabilizing businesses' expectations and bolstering their confidence," said Li Xuhong, professor at the Beijing National Accounting Institute.