Page 8 - The South China Business Journal
P. 8
South China Business Journal
CHINA BRIEFING
Photo from bing.com
China The tax cuts simplify the value-added tax As previously reported, the government
Announces (VAT) system, reduce rates for small and will eliminate the 13 percent tax bracket,
US$55.2 medium sized enterprises (SMEs), offer leaving only the 17 percent, 11 percent, and
Billion in incentives for certain industries, and in- six percent brackets.
Tax Cuts crease health insurance deductions. The
measures follow Premier Li Keqiang’s All products previously part of the 13
This article was first published on China Briefing. pledge in the annual Work Report in March percent bracket will become part of the
to cut corporate taxes by RMB 350 billion 11 percent bracket, namely: cereals and
China has approved RMB 380 (US$50.7 billion) and business fees by edible vegetable oils; tap water, heating,
billion (US$55.2 billion) worth of tax RMB 200 billion (US$29 billion) in 2017. cooling, hot water, coal gas, liquefied pe-
cuts for businesses and individuals, ac- troleum gas, natural gas, methane gas,
cording to a State Council statement on The tax relief package is the first since Chi- coal/charcoal products for household
April 19. The new tax cuts are part of a bid na completed its VAT reform last year, and use; books, newspapers, magazines (ex-
to boost economic growth by reducing the comes as the economy is forecast to slow in cluding newspapers and magazines dis-
tax burden on businesses and encouraging the latter half of 2017. Given the depth of tributed by the Post Department); feed,
consumption. recent tax reforms, business leaders should chemical fertilizers, agricultural chemi-
consult professional guidance to ensure tax cals, agricultural machinery and plastic
efficiency and compliance. covering film for farming; agriculture,
forestry, products of animal husbandry,
VAT System Simplified aquatic products; audio-visual products;
electronic publications; dimethyl ether;
The number of VAT brackets will be re- and edible salt.
duced from four to three as of July 2017.
6
CHINA BRIEFING
Photo from bing.com
China The tax cuts simplify the value-added tax As previously reported, the government
Announces (VAT) system, reduce rates for small and will eliminate the 13 percent tax bracket,
US$55.2 medium sized enterprises (SMEs), offer leaving only the 17 percent, 11 percent, and
Billion in incentives for certain industries, and in- six percent brackets.
Tax Cuts crease health insurance deductions. The
measures follow Premier Li Keqiang’s All products previously part of the 13
This article was first published on China Briefing. pledge in the annual Work Report in March percent bracket will become part of the
to cut corporate taxes by RMB 350 billion 11 percent bracket, namely: cereals and
China has approved RMB 380 (US$50.7 billion) and business fees by edible vegetable oils; tap water, heating,
billion (US$55.2 billion) worth of tax RMB 200 billion (US$29 billion) in 2017. cooling, hot water, coal gas, liquefied pe-
cuts for businesses and individuals, ac- troleum gas, natural gas, methane gas,
cording to a State Council statement on The tax relief package is the first since Chi- coal/charcoal products for household
April 19. The new tax cuts are part of a bid na completed its VAT reform last year, and use; books, newspapers, magazines (ex-
to boost economic growth by reducing the comes as the economy is forecast to slow in cluding newspapers and magazines dis-
tax burden on businesses and encouraging the latter half of 2017. Given the depth of tributed by the Post Department); feed,
consumption. recent tax reforms, business leaders should chemical fertilizers, agricultural chemi-
consult professional guidance to ensure tax cals, agricultural machinery and plastic
efficiency and compliance. covering film for farming; agriculture,
forestry, products of animal husbandry,
VAT System Simplified aquatic products; audio-visual products;
electronic publications; dimethyl ether;
The number of VAT brackets will be re- and edible salt.
duced from four to three as of July 2017.
6
