US$1.33 billion tax cut for Beijing small businesses
0 Comment(s)
Print
E-mail China.org.cn, February 15, 2019
Beijing will further cut taxes for small and micro enterprises by 9 billion yuan (US$1.33 billion) this year, the municipal finance authority said on Feb. 13.
The latest tax cut policy issued by the central government has raised the threshold for value-added tax (VAT) exemption from 30,000 yuan to 100,000 yuan in monthly sales for small-scale taxpayers, and the threshold of 50 percent reduction of income tax from 1,000,000 yuan to 3,000,000 yuan for micro and small businesses, for the period from Jan.1, 2019 to Dec. 31, 2021.
Provincial governments are authorized to reduce selected taxes for small-scale taxpayers by no more than 50 percent. These selected taxes are called the "six taxes and two surcharges" in short include the resource tax (excluding water tax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding stamp duty on securities transactions), farmland occupation tax and educational surcharge, and local surcharge.
Beijing will reduce the "six taxes and two surcharges" by the maximum amount of 50 percent to support the development of small and micro businesses in the city. This preferential tax cut is expected to reduce the tax burden on the city's small and micro businesses by 9 billion yuan and will benefit more than one million taxpayers, according to the municipal finance authority.
Take an enterprise with an annual taxable income of 3 million yuan as an example. Under the previous tax rate of 25 percent, this business would have had to pay an income tax of 750,000 yuan per year. However, under the adjusted policy this business now falls into the category of small and micro enterprises and will only need to pay an income tax of 250,000 yuan per year.
In addition, Beijing will establish a mechanism for quick to make the tax cut policy well known among Beijing's small and micro enterprises. The reasonable appeals and opinions concerning the taxation of small and micro enterprises will be handled promptly and will be completed within five working days of receipt. For cases that cannot be processed within the timeframe, the handling time can be extended to a maximum of 10 working days. For appeals and opinions concerning departments of taxation and levy, the processing time shall be within five working days.
Go to Forum >>0 Comment(s)