BEIJING: China has announced seven new tax cuts measures worth 60bn yuan (US$9.5bn) to boost the development of small, innovative enterprises, as well as lower costs for real economy enterprises.
The moves were announced following a State Council executive meeting presided over by Chinese Premier Li Keqiang on Wednesday in Beijing, according to a press release of the State Council.
“The move aims to reduce the cost for innovation and entrepreneurship, energise small and micro businesses, and spur job creation,” the statement read.
In addition, the per unit value of newly-purchased research and development (R&D) instruments and equipment eligible for one-time tax deduction will be raised from 1m to 5m yuan (US$158,000 to US$790,000), with the measures to be in effect until the end of 2020.
Additional measures include allowing additional tax deduction for overseas R&D, extending time limits for the capital loss carryover for high-tech firms and technological small and medium-sized firm, and a tax reduction for all enterprises for employee training costs.
The meeting also adopted measures to reduce stamp duty books of account starting from May 1, 2018.
The preferential policies had been piloted in the China’s eight innovation and reform experimental zones, including the Beijing-Tianjin-Hebei area, Shanghai and Guangdong, as well as in Suzhou Industrial Park, and will now be extended to the whole country.
