China To Extend Preferential Tax Policies For Businesses Until 2023 - State Council

Muhammad Irfan Published January 20, 2022 | 08:15 PM

China will extend tax and fee cut policies until 2023 in order to boost business and innovations during the country's recovery after the COVID-19 pandemic, the Chinese State Council said

MOSCOW (UrduPoint News / Sputnik - 20th January, 2022) China will extend tax and fee cut policies until 2023 in order to boost business and innovations during the country's recovery after the COVID-19 pandemic, the Chinese State Council said.

The decision was adopted during a meeting of the State Council on January 19, chaired by State Council Premier Li Keqiang.

"To help ease the difficulties businesses face and promote entrepreneurship and innovation, the meeting decided to extend another 11 preferential tax and fee policies involving technology, job creation, business startups, medical care, education and other sectors to the end of 2023, on top of previous extensions of the expired preferential policies," the message published on the website read.

According to the decision, technology firms, university science parks and makerspaces will be exempted from VAT.

The State Council considered a further relaxation of certifying conditions for technology-based startups and to allow investors "to have their taxable income deducted in proportion to their investment in the startups.

Personal income tax will be waived for subsidies given to medical staff and COVID-19 control workers, and for COVID-19 drugs and prevention supplies, provided by employers to employees. Registration fees will be lifted for drugs and medical devices for COVID-19 response. Moreover, the State Council decreased corporate income tax to 15% for those companies engaged in pollution control, the message read.

Real estate and urban land taxes will be waived for wholesale markets of agricultural products, for enterprises in commodity storage, and for technology-based corporations, incubators and universities.

Li Keqiang said that these measures "will deliver more widely shared benefits."