On Mar. 4, CHI GVT reduced six local taxes and two fees for SMEs.
CHI GVT, CHI Tax offered reductions and exemptions on taxes and fees for SMEs.
Six Taxes/Two Fees
Resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty (except for securities transactions), has reduced rate of 50% or less.
As well as tax on farmland used for non-agricultural purposes, education surcharge.
This applies to small-scale value-added taxpayers, small businesses with low-profit, and self-employed households, and can be applied on top of other preferential policies.
Deduction of Equipment
For equipment and appliances newly purchased from Jan. 1 to Dec. 31, 2022, with a unit value of over RMB5mn, can apply pre-tax deduction depending on unit value.
Losses resulting from deduction in current year can be carried forward next five years.
Effectiveness
Implementation period of six taxes/two fees is from Jan. 1, 2022 to Dec. 31, 2024.
Equipment deductions apply to those newly purchased from Jan. 1 to Dec. 31, 2022.
In Mar. 2022, CHI GVT notice on lower corporate income tax for SMEs, see #132222.
