China’s MoF (Ministry of Finance) has agreed that small and micro sized enterprises will be defined as having incomes up to RMB100,000 with effect from 1/Jan/14, up from the previous limit of RMB60,000. Such enterprises will now be able to take advantage of certain tax cuts, ultimately then, underpinning China’s economic growth. Further, such enterprises will not have to obtain prior approval from China’s State Administration of Taxation (SAT).
As a tax barrister, it’s always good to see assistance and tax breaks being given to small and fledgling companies. Bigger business are better able to find their own paths through tax legislation where smaller enterprises often struggle. These types of breaks help level the playing field.
Tax Barrister, Accountant