China: Corporate tax, VAT incentives effective in 2017 | KPMG | GLOBAL

China: Corporate tax, VAT incentives are effective in 2017

China: Corporate tax, VAT incentives effective in 2017

In China, a range of tax incentives including certain reduced rates aim to facilitate the development of the Chinese economy.

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The tax incentive measures include the following

  • Reduction of the value added tax (VAT) brackets for general VAT taxpayers from four to three
  • Reduced taxable income threshold for eligible small enterprises to pay corporate income tax on half (50%) of their income at a rate of 20%
  • Increase to the research and development (R&D) expense “super deduction” for science and technology-related small and medium enterprises
  • A 70% tax deduction incentive for venture capital enterprises to invest in non-listed small and medium high and new technology enterprises by way of equity investment
  • Preferential tax treatment for premiums paid to eligible commercial health insurance providers applied on a nationwide basis
  • Three-year extension applied to package of current tax incentive policies due to expire at the end of 2016

 

Read a May 2017 report [PDF 465 KB] prepared by the KPMG member firm in China

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