China will continue to cut costs for companies to boost real economy
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.