Personal Taxes

China pronounces measures to cut back the revenue tax burden

China on Wednesday announced tax measures to ease the income tax burden and ease pressure from low and middle income groups.

The annual one-time bonus will not be included in the current month’s salary, and the implementation of the separate monthly taxation policy will be extended until the end of 2023, concluded the State Council executive meeting chaired by Chinese Premier Li Keqiang.

The meeting also announced a tax-exemption policy for those who earn no more than 120,000 yuan ($ 18,839) in annual income or who are required to prove taxes less than 400 yuan, will be extended until the end of 2023.

For listed companies, the separate taxation policy for stock incentives has been extended through the end of 2022, which can cut taxes by 110 billion yuan a year, according to the meeting.

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