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China announces more tax cuts for small companies

Companies with monthly sales below 100,000 yuan ($14,761) will be exempt from value-added tax, the ministry said in a statement. The previous threshold was below 30,000 yuan in monthly sales

Beijing: China’s Finance Ministry on Friday announced further tax cuts for small companies as part of an effort to create jobs and promote economic stability.

Companies with monthly sales below 100,000 yuan ($14,761) will be exempt from value-added tax, the ministry said in a statement. The previous threshold was below 30,000 yuan in monthly sales.

The tax cuts for small firms took effect this month and run to the end of 2021, the ministry said.

Premier Li Keqiang said this month that tax cuts targeting smaller companies will help to support employment and economic stability, and expand the country’s tax base over the long term.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.