China will continue lift burdens for enterprises on VAT rates and basic pension insurance premiums

According to the recent Government Work Report, China will continue implementing reductions of VAT rates and the rate of basic pension insurance premiums for enterprises, and China will make further tax and fee cuts of about 500 billion yuan.

According to the recent Government Work Report, China will continue implementing reductions of VAT rates and the rate of basic pension insurance premiums for enterprises, and China will make further tax and fee cuts of about 500 billion yuan.

The policies introduced early this year that are due to expire by June, 2020 will all be extended till the end of the year.

They include the following: exempting micro, small, and medium businesses from contributions to basic pension insurance, unemployment insurance, and work injury compensation insurance schemes; reducing or cancelling VAT for small-scale tax payers; exempting VAT on services such as public transportation, restaurants and hotels, tourism and entertainment, and culture and sports; and reducing or cancelling civil aviation development fund contributions and port development fees.

The payment of corporate income taxes by micro and small businesses and self- employed individuals will be postponed to next year.

These measures are expected to enable companies to save additional fees of more than 2.5 trillion yuan throughout the year

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/10/china-will-continue-lift-burdens-for-enterprises-on-vat-rates-and-basic-pension-insurance-premiums/.

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