Nov. 1 – As part of its “structural tax reform,” China has decided to raise the tax-free thresholds for business tax (BT) and value-added tax (VAT) collection starting from today, in a bid to reduce tax burdens for enterprises, especially for small businesses.
In the “Decision on Revising ‘Implementation Details on Interim VAT Provisions’ and ‘Implementation Details on Interim BT Provisions’ (MoF Decree No.65)” released on October 28, the Ministry of Finance (MoF) stipulated that, the VAT-free sales value will be lifted as follows:
The tax-free thresholds for BT collection are also elevated:
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