Official data points to sizeable reductions in taxes and administrative fees in China since the start of 2020 as part of ongoing policies as well as efforts by the central government to boost the domestic economy during the spread of the COVID-19 pandemic.
Data released by the State Taxation Administration (SAT) on 29 September indicates that new tax and administrative fee reductions in China totalled 1.8773 billion yuan (approx. USD$276.47 billion) for the period from January to August.
SAT said China’s tax authorities had endeavoured to consolidate and expand the effects of pre-existing tax and fee reductions since the start of the year, as well as adopted a series of new measures to ensure that policy dividends reached market actors.
According to SAT these tax reductions had “reduced the burden on enterprises, increased the vitality of the market, and obtained excellent results.”
During the period from January to August 92% of more than 50 million small-scale enterprise taxpayers enjoyed exemptions from value-added taxes for monthly sales of under 100,000 yuan.
