China to Exempt Small Businesses From 22 Fees

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Nov. 17 – In a move to substantially reduce the financial burdens on the country’s micro and small-sized enterprises (MSEs), China recently announced that MSEs would be exempt from 22 types of administrative fees charged by 13 different government departments. The introduction of this new favorable fiscal measure is yet another step China is willing to take to assist its MSEs following other recent promises of favorable loan offers and tax treatment.

According to the “Circular on MSEs’ Exemption from a Few Administrative Fee Charges (caizong [2011] No.104)” co-issued by the Ministry of Finance and the National Development and Reform Commission on November 14, MSEs will be exempt from the following administrative fees between January 1, 2012 and December 31, 2014:

  • Enterprise registration fees as charged by administrative departments of industry and commerce
  • Tax invoices fees as charged by tax departments
  • Customs supervision fees as charged by customs departments
  • Fees on shipping permits, artifact certifications, and Certificates of Origin for textiles, as charged by departments of commerce
  • Fees on Organization Code Certificates and endorsement, as well as issuance of General Certificates of Origin, as charged by quality control departments
  • Fees on Certificates of Origin of Goods and ATA carnets as charged by councils for the promotion of international trade
  • Land registration fees as charged by land and resources departments
  • Computer software copyright registration fees as charged by press and publication departments
  • Fees on agricultural machinery supervision, new veterinary drug approval, Veterinary Drug Import Permit approval, and produced veterinary drug registration as charged by agricultural departments
  • Forest Land Use Permit fees, as charged by forestry departments
  • Fees on star-rating signs/certificates, signs/certificates for A-rated tourist attractions and signs for industrial and agricultural tourism demonstration sites, as charged by tourism departments
  • Halal food certification fees as charged by the Islamic Association of China
  • Locally approved administrative fees as charged for management, registration and certifications

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China. The firm specializes in assisting foreign enterprises with their tax obligations. For advice, please email china@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.

This article is also available on Dezan Shira & Associates’ online business resource library. To view the article, and other regulatory updates, please click here.

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