China has recently announced several tax changes designed to
spur business growth. They include:
Additionally, the State Council has approved reductions in
the VAT rate from 17% to 16% for manufacturing, and from 11% to 10% for
construction, transportation, basic telecom services, and farm produce.
Also, the tax rate has recently been cut from 25% to 15% for
generic drug companies, and the resources tax on shale gas production has been
reduced from 6% to 4.2% through March 31, 2021.
“We must work hard to cut the cost of the real
economy, bring out the vitality of all market entities by lifting the
discriminatory restrictions and hidden barriers in taxation and other respects,
and see that all the incentives … are fully delivered” –President Xi Jinping,
in a recent