On July 29th, State Ministry of Finance and China’s State Administration of Taxation jointly released an announcement on “Temporarily Exempting Value-added Tax and The Tax on Turnover for Certain Small Enterprises”.
Key content:
- Value-added tax and the tax on turnover will be scrapped for small businesses whose revenues are less than 20,000 yuan ($3,200) a month.
- 6 million enterprises are expected to benefit and the amount of tax reduction is nearly 300 billion yuan per year.
- This policy takes effect from August1, 2013.
