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Ningxia cuts small and micro business taxes by US$19.9 mln
By Liang Yan
China.org.cn, April 9, 2015 Print  E-mail

According to the tax department of Ningxia Hui Autonomous Region, taxation bureaus will enact policies that cut tax revenues by limiting the collection of turnover taxes, business income taxes, stamp taxes, and registration fees for small and micro business, limiting the total tax liability of such business in the region by 122 million yuan (US$19.9 million).

To give more support to small and micro businesses, the tax liability standards for small and micro businesses whose annual taxable income was at or below 100,000 yuan was extended to businesses with annual taxable income totaling at or below 200,000 yuan. The income tax liability for such businesses will be reduced by 50% of the calculated income tax liability, so the business income tax rate for eligible businesses is 20 percent.

Additionally, Ningxia will initiate a "turning turnover tax into value-added tax" pilot program to reduce businesses' tax burden, optimize industry structures, enhance innovation in business and promote employment.

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