BEIJING: Recent tax cuts have reduced the corporate tax burden by CNY1 trillion this year in China, Chinese Premier Li Keqiang said. This is considerably more than in recent years, with the tax reduction most notably due to the introduction of China’s new value-added tax regime. Businesses saw savings worth CNY2 trillion during the four years between 2013 and 2016. China has also introduced tax breaks for small and micro-enterprises and increased tax relief for innovation. Further reforms are planned, Li said. These will reduce discretion in the administration of taxes and prevent arbitrary taxation. China will improve tax services for taxpayers and simplify and improve the structure of the VAT regime, he said.
Recent tax cuts have reduced the corporate tax burden by CNY1 trillion this year in China, Chinese Premier Li Keqiang said. This is considerably more than in recent years, with the tax reduction most notably due to the introduction of China’s new value-added tax regime. Businesses saw savings worth CNY2 trillion during the four years between 2013 and 2016. China has also introduced tax breaks for small and micro-enterprises and increased tax relief for innovation. Further reforms are planned, Li said. These will reduce discretion in the administration of taxes and prevent arbitrary taxation. China will improve tax services for taxpayers and simplify and improve the structure of the VAT regime, he said.
