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Chinese Government Work Report Includes Further Tax Relief for 2022 — Orbitax Tax News & Alerts

The Chinese Government has published the Government Work Report that was delivered on 5 March 2022 at the Fifth Session of the Thirteenth National People's Congress. Among other things, the report covers tax policies for 2022, including further tax relief/support:

  • A phased VAT exemption will be introduced for small-scale taxpayers;
  • The corporate tax rate on the part of annual taxable income of small and micro enterprises from CNY 1 million to 3 million yuan will be reduced by half;
  • Priority will be given to the refund of excess input VAT credits for small and micro enterprises, as well as taxpayers in manufacturing, scientific research and technical services, ecological environmental protection, electricity and gas, and transportation;
  • The super deduction policy for R&D expenses will be continued, with the additional super deduction amount increased from 75% to 100% for SMEs (i.e., 200% total deduction);
  • Tax incentives will be implemented for enterprises to invest in basic research; and
  • Policies such as accelerated depreciation of equipment and tools and preferential income tax for high-tech enterprises will be improved.

Details on the implementation of the tax relief/support will be published once available.