China is reviewing the tax burden on entrepreneurs

The legislative authority of the People’s Republic of China, the National People’s Committee, decided to reduce the tax burden on entrepreneurs, which amounts to 350 billion yuan (about 50.8 billion US dollars). This project was approved by the country's parliament after a long week of consultations with the Chinese government.

The Minister of Finance of China, Xiao Jie, announced that, as part of a government initiative, the executive authorities have reduced the amount of payment of required business taxes. In particular, the tax on companies with a turnover of up to 500 thousand yuan will be reduced to the maximum allowable top rate of 50% of annual income.

Also, the government went to reduce for the small and medium-sized commercial structures in the field of high technologies, allowing them to receive, instead of 50%, almost up to 75% compensation for taxes paid by the state.

The Chinese authorities also removed a three-level tax on corporate services, simplifying them to a single tax. The government also wants to revise the previous rates of value-added tax (VAT) rates.

"Now it (the VAT ) in China has four indicators for different groups of entrepreneurs - 6, 11, 13 and 17%. The government has a proposal to remove the highest interest rate on this tax, and I think that the decision will be made in the near future ", Minister Jie noted.

Economists argue that the actions of the Chinese authorities are associated with a partial restructuring of the country's income for 2018. It turned out that with the availability of additional funds in the amount of more than 680 billion yuan (about 102.7 billion US dollars), the government decided to stimulate just small and medium-sized businesses, giving it the opportunity to pay income and fees at national rates much easier.

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