China offers new VAT Tax relief for SME's and Self-Starters. MGI Worldwide member LehmanBrown International Accountants explains
In his recent white paper, Dickson Leung, partner at MGI Worldwide CPAAI member firm LehmanBrown International Accountants, highlights the incentives offered by the Chinese government to help businesses grow and consolidate.
SMEs and start-ups can enjoy full and partial IIT, CIT and VAT exemptions as part of the Chinese Government incentives to help businesses.
There has been a few weeks of silence since 2020, but in 2021 China has started releasing gradual announcements as it tries to tend its local business operations while it waits for the rest of the world to go back to business as usual.
While it waits, in Q1 of 2021, China saw a record 18.7% growth in a recent AFP survey. At the same time, China is keeping a close eye on its debt by making key policies and investment projects go through fiscal endurance evaluations and making officials accountable for any debt that proves to be problematic in future.
With all this in mind, China has announced very beneficial tax reliefs, which aim to protect the self-employed and SMEs while continuing to achieve goals from its national agenda regarding R&D.
Download the full paper HERE
About LehmanBrown
LehmanBrown International Accountants is a China-focused accounting, taxation and business advisory firm, operating dedicated offices in Beijing, Tianjin, Shanghai, Shenzhen, Guangzhou, Hong Kong and Macau, and with an extensive affiliate network throughout China and in over 110 countries worldwide. Being registered with the PCAOB in the US LehmanBrown can conduct SEC work, as well as being accredited by accounting bodies in the UK and Australia.
MGI Worldwide with CPAAI is a top 20 ranked global accounting network and association with almost 10,000 independent auditors, accountants and tax experts in some 460 locations in over 100 countries around the world.