As of 1 January 2019, the Chinese government has raised VAT registration threshold from 30,000 CNY to 100,000 CNY as a temporary policy to face a slowing global economy. The temporary measure is planned for the next two years and it is aimed to China’s small businesses.
Cuts in stamp duty VAT, the reduction to education taxes on businesses and the rate cut of the corporate income tax for small companies from 25% to 20% are all part of a tax incentive policy.
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