18 Feb 2019
Guangdong Introduces Tax Cuts for Small Businesses
Small businesses in Guangdong are to benefit from 50% exemptions across a range of taxes in line with a new directive jointly-issued by the Guangdong Department of Finance and the Guangdong Provincial Tax Service. The new ruling follows an earlier pledge by the State Council to provide greater support for small businesses.
Among the specific tax incentives now on offer are the following:
- Small-scale VAT taxpayers are to be offered 50% exemptions from Resource Tax, Urban Maintenance and Construction Tax, Property Tax, Urban Land Use Tax, Stamp Duty (excluding Stamp Duty on securities trading) and Farmland Occupation Tax, as well as on certain educational surcharges
- Any small-scale VAT taxpayers already enjoying a preferential rate with regard to these charges may seek a further concurrent reduction under the terms of these new incentives
The circular represents the Guangdong authorities’ response to the Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Implementation of the Inclusive Tax Reduction and Exemption Policy for Small and Low-Profit Enterprises (Cai Shui No. 13 ). The measures will be valid from 1 January 2019 to 31 December 2021.
For further details, please access the following links: