In the first quarter of 2017, China introduced a range of tax reduction measures to facilitate the development of the Chinese economy. Further planned tax reduction measures were set out in the Report on the Work of the Government by Premier Li at an executive meeting of the State Council held on 19 April 2017. These include, inter alia:
(i). Reduction of VAT brackets for general VAT taxpayers from four to three;
(ii). Increase to research and development expense super deduction for science and technology-related small and medium enterprises;
(iii). Preferential tax treatment for premiums paid to eligible commercial health insurance providers shall be applied on a nationwide basis.
These tax reduction measures may expect to further drive growth and innovation.