China to cut corporate fees and taxes by 2.5 trillion yuan this year

SHANGHAI, May 22 (SMM) – China will extend the tax and fee reduction policies introduced early this year to the end of this year, according to the government work report delivered on Friday.

Those policies were scheduled to expire by June, including the following: Exempting micro, small, and medium businesses from contributions to basic old-age insurance, unemployment insurance, and work injury compensation insurance schemes; reducing or cancelling VAT (value-added tax) for small-scale taxpayers; exempting VAT on services such as public transportation, restaurants and hotels, tourism and entertainment, and culture and sports; and reducing or cancelling civil aviation development fund contributions and port development fees.

These measures are expected to save enterprises an additional 2.5 trillion yuan throughout the year.