We provide an overview of preferential tax policies aimed at promoting growth, innovation, and investment in China’s manufacturing sector.
In our China Monthly Tax Brief for July 2023, we discuss the extension of some noteworthy preferential tax policies and treatment till the end of 2027.
China has extended several tax incentives for small businesses till the end of 2027, including CIT, VAT, and access to preferential treatment. We discuss how the incentives apply and key dates.
China has issued a guidance note that summarizes the available tax incentives for businesses and enterprises in the education sector. We list these 28 tax incentives and their relevant policy basis.
We discuss which supporting documents must be retained for continued access to China’s tax incentives and the importance of collecting and preserving relevant documentation for asset loss deductions.
In our China Monthly Tax Brief for June 2023, we discuss the VAT Law, Tariff Law, GBA IIT subsidy, and nationwide expansion of the fully digitalized e-fapiao. Further, China companies can now enjoy additional deduction of R&D expenses in July as well.
China has extended its tax exemption policy for new energy vehicles (NEVs) until 2027, demonstrating its commitment to promoting the electric vehicle (EV) industry.
Does Your Business Qualify for China’s Reduced 15% CIT Rate? Defining “Substantial Operations” in Key Development Zones
To be eligible for the reduced 15% corporate income tax rate, companies must prove they have “substantial operations” in certain areas. We explain what the requirements are.