Tax Relief

Small companies in China proceed to obtain pandemic tax breaks

China will extend certain tax break measures introduced in the early days of the Covid-19 pandemic, the Treasury Department said Tuesday.

The pandemic policy mainly supports smaller companies and the film industry. The MOF said it would extend:

  • VAT reductions for small and small businesses by December 31, 2021.
  • A further cut in VAT from 3% to 1% for qualified smaller businesses in Hubei Province, where the pandemic was most severe, over the same period.
  • Tax reductions for theaters and other companies in the film industry until the end of the year.

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