China will continue to reduce
costs for companies to boost the real economy that has been recovering
from COVID-19, the National Development and Reform Commission (NDRC)
said on Monday.
The country will further
optimize tax reduction policies to extend the implementation period of
the value-added tax concessions for small-scale taxpayers and increase
their tax threshold from monthly sales of 100,000 yuan to 150,000 yuan
(between $15,553 and $23,329), according to the NDRC.
In addition to the preferential
treatment they are already receiving, small and micro-enterprises and
individual businesses whose annual taxable income is less than 1 million
yuan will be able to access an income tax break of 50 percent, the
national economic planner said.
For advanced manufacturing
enterprises, the incremental value-added tax will be refunded in full
every month, according to the NDRC.
China will also continue to
implement the 75-percent deduction policy for enterprises' research and
development expenses and increase the additional deduction ratio for
manufacturing enterprises to 100 percent, the NDRC said.
The top economic planner also
said various monetary policy tools will be used to ensure that the
growth rate of money supply and the scale of social financing keep pace
with the growth rate of the nominal economy.
The country will continue to use
the inclusive relending and rediscount policies to support key and weak
areas of the national economy and expand financing channels through
multi-level capital markets for companies, according to the NDRC.
Electricity, land, office rent
and logistics costs will also be cut for enterprises, the NDRC said.
Source: CGTN |