China Issued New Tax Deduction Policy for Small Low-profit Enterprises
[2009-12-31 13:16:43]
China has issued a new tax deduction policy for its small low-profit enterprises to help them survive the global financial crisis.
Under the new scheme, small-sized enterprises with taxable incomes that are less than 30,000 yuan (4,400 USD) will see their taxable income halved, and enjoy an 80 percent discount in their income taxes.
The tax deduction policy will apply for the whole of 2010, according to the Ministry of Finance and the State Administration of Taxation.
The global financial crisis struck a severe blow to China's small and medium-sized enterprises (SMEs).
Experts estimated that the crisis has left four out of ten SMEs bankrupt and another four in a state of near-bankruptcy. Only 20 percent of SMEs were reported as being unaffected.
Even as the economy has shown sings of a recovery, the situation for SMEs is still far from optimistic.
Insiders say the new tax deduction policy is aimed at relieving the financing problems that have long restrained the development of China's SMEs.
Under the new scheme, small-sized enterprises with taxable incomes that are less than 30,000 yuan (4,400 USD) will see their taxable income halved, and enjoy an 80 percent discount in their income taxes.
The tax deduction policy will apply for the whole of 2010, according to the Ministry of Finance and the State Administration of Taxation.
The global financial crisis struck a severe blow to China's small and medium-sized enterprises (SMEs).
Experts estimated that the crisis has left four out of ten SMEs bankrupt and another four in a state of near-bankruptcy. Only 20 percent of SMEs were reported as being unaffected.
Even as the economy has shown sings of a recovery, the situation for SMEs is still far from optimistic.
Insiders say the new tax deduction policy is aimed at relieving the financing problems that have long restrained the development of China's SMEs.
Source: Reuters
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