VALUE-ADDED TAX EXEMPTED IN CHINA
The Ministry of Finance and the State Taxation Bureau issued a joint announcement (No. 15 [2022]). China is extending the value‑added tax (VAT) exemption policy for small‑scale taxpayers and small business firms. The exemption has started since April 2021 due to the Covid-19 pandemic, slow down of business activities across within China and cross-boarder businesses. From now to 31st December 2022, 3% of the VAT will be exempted. Furthermore, the small business firms’ taxpayers with quarterly sales of RMB450,000 or less will be exempt from VAT as well.
The measure aimed at supporting small firms and easing their financial burdens amid recent COVID-19 outbreaks.
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