Extension of Tax Reduction Policies
ISSUING AUTHORITY:
Ministry Of Finance
DATE OF ISSUANCE:
January 25, 2022
Premier Li Keqiang announced the extension of 11 preferential and tax-free policies relating to industries including technology, business startups, medical care, education and other sectors. Li stated that such taxes and fees should be reduced as much as possible to allow for an expansion of the tax base.
Indirect taxation will also be affected as VAT exemptions will be available for incubation services for technology firms and science and technology parks established by universities. Real estate and land used in such incubation services will also be exempt from real estate tax and urban land-use tax.
Qualifying criteria for technology-based start-ups will also be relaxed allowing both VC firms and individual investors to benefit from tax reductions in those startups.
These policies reflect the general trend in China of providing fiscal incentives to technology startups, as well as R&D conducted by existing manufacturers.
Reference:
Li stresses strengthening key supplies
