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Tax policies to boost market confidence

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China will strengthen its fiscal policy assistance to boost growth this year, and will move steadily on delivering preferential tax and fee policies.

Foreign enterprises are expected to expand funding into research and development in China, as the country strengthens its support to innovation with long-term preferential tax policy arrangements, they said.

These include reductions to premiums for unemployment insurance and workers’ compensation, and reductions to corporate income tax on annual taxable income up to one million yuan for micro and small enterprises and self-employed individuals. “The policies are particular about supporting micro and small enterprises and individual businesses, as well as focusing on promoting R&D and innovation, which is expected to increase confidence and vitality of various market entities,” she said.

 

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