Chinese Tax Cuts Exceed USD$386 Billion in 2020

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China says it pushed through a copious volume of tax cuts in 2020 as part of ongoing efforts to spur the economy that accelerated in the wake of the COVID-19 pandemic.

Tax and administrative fee reductions totalled over 2.5 trillion yuan (approx. USD$386 billion) in 2020, according to figures released by the State Taxation Administration (SAT) on 8 January.

SAT said that they also provided deferrals on tax payments worth 29.2 billion yuan to 3.99 million taxpayers last year.

China’s tax revenues (minus export tariff rebates) were 13.68 trillion yuan in 2020, for a YoY decline of 2.6%.

During the 13th Five Year Plan (2016 – 2020) total tax and administrative fee reductions exceeded 7.6 trillion yuan.

SAT head Wang Jun (王军) said that in the upcoming year the authority would further consolidate and expand the results of tax and administrative fee cuts, and expedite improvements to a modern tax collection system.

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