26 May 2023
The State Taxation Administration (“the authorities”) issued “2023 Guidelines for Extending and Optimising Innovative Implementation of Tax Preferential Policies” on 26 May 2023. The authorities announced a series of guidelines for extending and optimising innovative implementation of tax preferential policies, including from 1 January 2023 to 31 December 2023, small-scale value-added tax (“VAT”) taxpayers with monthly sales of less than RMB100,000 will be exempted from VAT. From 1 January 2023 to 31 December 2024, micro and small sized enterprises with the portion of annual taxable income not exceeding RMB1,000,000, will enjoy reduced taxable income of 25%, which is subject to corporate income tax of 20%. From 1 January 2022 to 31 December 2024, micro and small sized enterprises with the portion of annual taxable income over RMB1,000,000, but below RMB3,000,000, will enjoy reduced taxable income of 25%, which is subject to corporate income tax of 20%.