The Ministry of Finance announced further support for the development of small and micro enterprises and individual businesses

SHANGHAI, August 2 (SMM) –

From January 1, 2023 to December 31, 2027, individual income tax shall be levied by half on the part of the annual taxable income of individual industrial and commercial households that do not exceed 2 million yuan. Besides, individual industrial and commercial households may also enjoy this preferential policy in addition to other existing preferential policies for individual income tax. From January 1, 2023 to December 31, 2027, the resource tax (excluding water resource tax), urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding stamp duty on securities transactions), cultivated land occupation tax, education fee surcharge, and local education surcharge will be levied by half on small-scale VAT taxpayers, small and low-profit enterprises as well as individual industrial and commercial households. The policies of reducing the taxable income of small enterprises with low profits by 25% and paying corporate income tax at a tax rate of 20% shall be continued until December 31, 2027.