(Adds details)
BEIJING, March 27 (Reuters) - China's finance ministry
on Monday issued preferential tax policy for some small firms
and household businesses, as part of steps to support the
economic recovery.
China will levy a 20% income tax for small firms with
annual sales not exceeding 1 million yuan ($145,340.39),
effective from the start of 2023 to the end of 2024, the
ministry said in a notice.
Small firms to enjoy the lower tax - versus the standard
25% rate - need to have annual taxable income not exceeding 3
million yuan, the number of employees not exceeding 300, and
total assets not exceeding 50 million yuan, the ministry said.
It will also halve personal income tax for household
businesses with annual sales not exceeding 1 million yuan.
The government has promised to improve its tax preferential
policies this year, offering more tax cuts and refunds, to
support the economy that is recovering steadily from one of
worst showings in nearly half a century last year.
($1 = 6.8804 Chinese yuan renminbi)
(Reporting by Kevin Yao and Ella Cao
Editing by Bernadette Baum)
