China MOF Announces Continuation, Enhancement of Preferential Tax Policies for Various Taxpayers

The Chinese Ministry of Finance Aug. 3 announced the continuation or enhancement of certain preferential tax policies. The announcement includes: 1) a VAT exemption on interest income paid to financial institutions on small loans to small enterprises, micro enterprises, and individual industrial and commercial households; 2) 50 percent reductions for similar taxpayers in most resource taxes, urban maintenance and construction tax, real estate tax, urban land use tax, most stamp duties, and cultivated land occupation tax, from Jan. 1, 2023, to Dec. 31, 2027; 3) an extension of the VAT reduction and exemption policy for small-scale taxpayers, until Dec. 31, ...