According to a decision at the meeting, the tax incentive enjoyed by venture capital firms and angel investors that sees 70 percent of their investment deducted from the taxable income of the seed and early stage high-tech startups they finance will be extended nationwide.
This policy has been piloted in the China's eight innovation and reform experimental zones, including the Beijing-Tianjin-Hebei area, Shanghai and Guangdong, as well as in Suzhou Industrial Park. Such tax cuts will be implemented from Jan. 1 for corporate income tax and from July 1 for personal income tax this year.
The meeting also decided to abolish the preclusion of the expenses of commissioned overseas R&D from additional tax deduction.
The time limit for the capital loss carryover of high-tech firms and technological small and medium-sized firms (SMEs) will be extended from 5 to 10 years pending approval by the Standing Committee of the National People's Congress.
All enterprises will see the tax deduction for employee training costs raised from the current 2.5 percent to 8 percent, the same rate as high-tech companies enjoy. These three measures are effective from Jan. 1 this year.
Li said that while this round of tax cuts is targeted at small and micro businesses to spur innovation, the whole economy stands to benefit. Though being the biggest job providers, small and micro businesses have long had difficulty in accessing affordable financing. Supporting their development is critical to ensuring employment.
【国内英语资讯:China rolls out fresh tax cuts to aid small businesses】相关文章:
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