China MOF Issues Notice on VAT Exemption for SME Loan Interest Income

The Chinese Ministry of Finance Sept. 6 issued a notice on VAT exemptions for financial institutions on interest income from loans granted to small and medium enterprises (SMEs). The notice includes: 1) SMEs that qualify a loan for the exemption; 2) conditions for financial institutions to claim the exemption; and 3) the requirement to maintain separate accounts for VAT-exempt loans. The notice applies from Sept. 1, 2018 to Dec. 31, 2020. [China, Ministry of Finance, 09/06/18]

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