China will cut company tax to boost economic growth
Small firms with an annual income of 500,000 yuan or less can now be taxed on half that amount, at a rate of 20%
Beijing — China will move to cut firms’ tax burdens by a total of 380-billion yuan ($55.19bn) this year to aid economic growth, the cabinet said on Wednesday. Tax cuts will help "consolidate a steadying and improving trend of the economy and promote structural upgrading", the cabinet said in a statement after a meeting chaired by Premier Li Keqiang. China’s economy grew a faster than expected 6.9% in the first quarter, as higher government infrastructure spending and a gravity-defying property boom helped boost industrial output by the most in more than two years. The government will simplify the value-added tax rate system and cut value-added tax for farm products and natural gas to 11% from 13%, from July 1, according to the statement posted on the central government’s microblog. China made a full switch to a value-added tax system from a flat business tax for companies in 2016, saving companies about 574-billion yuan, the government has said. The government will widen income-tax ...
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