China cuts earnings tax for some small companies to twenty% – finance ministry

Yuan banknotes are seen on this illustrative {photograph} taken in Beijing July 26, 2010. REUTERS/Jason Lee

BEIJING, March 18 (Reuters) – China will reduce earnings tax for some small companies to twenty% from 25%, the finance ministry mentioned on Friday, as a part of steps to ease burdens on small companies to help the slowing financial system.

Small companies might be topic to the decrease earnings tax till the tip of 2024 from the beginning of 2022, the ministry mentioned in an announcement on its web site.

To be eligible, the small firms’ annual taxable earnings can’t exceed 3 million yuan ($472,000), with property under 50 million yuan and fewer than 300 workers, in response to the assertion.

China’s Premier Li Keqiang has pledged to ship tax cuts and rebates totalling 2.5 trillion yuan this 12 months to assist cushion a slowdown within the financial system.

Small companies in China account for about 80% of city employment.

($1 = 6.3620 Chinese language yuan renminbi)

Reporting by Kevin Yao, Ellen Zhang; modifying by Jason Neely and Hugh Lawson

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