Chinese Businesses Expected to See over 1.8 Trillion Yuan in Tax and Fee Reductions in 2023

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China’s State Administration of Taxation (SAT) said businesses can expect to enjoy over 1.8 trillion yuan in tax and administrative fee reductions in 2023.

At a press conference held on 6 April, Wang Daoshu (王道树) Deputy Director of SAT, said that since the start the year China’s finance and tax departments have successively released two set of policies that are expected to achieve a total of 1.2 trillion yuan in tax reductions and fee cuts in 2023.

When existing policies for the retention and refunding of taxes are taken into account, Wang said he expects “the burden of taxes and fees for businesses entities to be reduced by more than 1.8 trillion yuan for the full year.”

SAT officials nonetheless expect tax revenues to increase, on the back of the recovering health of the Chinese economy following the roll-back of pandemic-related restrictions.

Cai Zili (蔡自力), the Chief Auditor-General of SAT, said the tax authority had achieved a “good start” to the year, with total tax revenues (excluding export tax refunds) of 4.676 trillion yuan in the first quarter, for a year-on-year (YoY) rise of 0.5%.