China MOF Issues Guidelines on Preferential Tax Policies for Small Businesses

• Chinese Ministry of Finance issued guidelines on preferential tax policies for small businesses
• Guidelines include tax deduction policies for venture capital companies, angel investors, and R&D expenses
• VAT exemption for taxpayers with monthly sales under 100,000 yuan from Jan. 1, 2023, to Dec. 31, 2027
• VAT exemption on interest income paid to financial institutions on microloans of up to 10 million yuan until Dec. 31, 2027
• 50% individual income tax reduction for individual industrial and commercial households on up to 2 million Chinese yuan in annual taxable income from Jan. 1, 2023, to Dec. 31, 2027
• Taxable income reduction to 25% and a 20% corporate income tax rate for qualified small, low-profit enterprises until Dec. 31, 2027
• Stamp duty exemption on loan contracts between financial institutions and small and micro enterprises until Dec. 31, 2027

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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