China announced on Friday to cut income tax from 25 percent to 20 percent for some small enterprises, as a part of support for small businesses amid the economic downturn pressure.

The income tax cut is designed for small companies with an annual taxable income not exceeding 3 million yuan ($471,475), not more than 300 employees and assets below 50 million yuan, according to an online statement released by Ministry of Finance.

The lower income tax goes into effect from the start of 2022 until the end of 2024, according to the statement.

China's Premier Li Keqiang announced a new package of tax cuts and refunds totaling 2.5 trillion yuan this year in the government work report.