China conducts more tax, fee cuts for small firms

BEIJING, March 4 (Xinhua) -- China has reduced or waived six local taxes and two fees for small and micro businesses, the Ministry of Finance said Friday.

The tax and fee cuts came into play from January 1, 2022, and will be effective until December 31, 2024, according to a circular jointly issued by the ministry and the State Taxation Administration.

In breakdown, resource tax, urban maintenance and construction tax, real-estate tax, urban land use tax, stamp tax and tax of farmland used for non-agricultural purposes as well as education surcharge and local education surcharge were reduced for all small-scale value-added taxpayers, low-profit small businesses and self-employed households.

The tax and fee cut is also available for those who have already benefited from other relevant preferential policies, according to the circular.

Low-profit small businesses mentioned in this circular refer to legitimate enterprises with annual taxable incomes of less than 3 million yuan (about 474,023 U.S. dollars), no more than 300 employees and 50 million yuan in total assets.