Source: Mary Swire¸ Tax-News.com¸ Hong Kong¸ 3rd November 2011
In a statement¸ China’s Ministry of Finance has announced that it has increased¸ with effect from November 1¸ the minimum thresholds for business tax¸ in order to provide some tax relief for the country’s smallest companies.
The range of minimum sales threshold for business tax has been raised to between RMB5¸000 (USD790) and RMB20¸000 per month¸ compared to the previous threshold of between RMB1¸000 and RMB5¸000.
Actual thresholds for business tax vary¸ within those limits¸ dependent on the location of the firm¸ and its business sector.
The Ministry’s announcement follows the earlier approval¸ by the State Council¸ of a pilot scheme to replace the existing business tax on the country’s service sector with VAT¸ which is currently imposed on manufacturing companies.
The changes to China’s sales taxes are¸ it is said¸ part of an attempt by the government to help smaller firms in the economy that have been greatly affected recently by increased costs and restricted credit.
Picture Source: businessnewsmacau.com