China announces incentives to boost growth of micro, small firms

Taxpayers with monthly sales revenue of no more than 100,000 yuan will continue to be exempt from value-added tax (VAT), the statement said.

Micro and small firms and self-employed households enjoying a 1 per cent VAT rate now from earlier 3 per cent will continue to enjoy the benefit, a state-controlled news outlet reported.

Income of lenders from loan interest and guarantee fees related to such small business entities will stay VAT-free, and their loan contracts will continue to be exempt from stamp duty.

ALCHEMPro News Desk (DS)