China Cabinet Approves Cross-Border E-Commerce Pilot Zone, Tax Incentives for SMEs Due to Coronavirus

The Chinese government April 8 announced that the State Council April 7 approved the establishment of a cross-border e-commerce pilot zone and tax incentives for small and medium enterprises (SMEs) due to the coronavirus pandemic. The announcement includes: 1) the promotion and effective implementation of e-commerce zones for cross-border trade; 2) a VAT exemption for interest income from loans made by financial institutions to SMEs up to 1 million Chinese yuan (US$141,555); 3) a VAT exemption for interest income on loans up to 100,000 yuan (US$14,155) from small loan companies, with 90 percent of income included as taxable corporate income; ...