China To Defer Tax Payment For Manufacturing Enterprises
On October 27, The State Council’s executive meeting chaired by Premier Li Keqiang decided to postpone the tax payment for small and medium-sized enterprises (SMEs) in the manufacturing sector.
For small and medium manufacturing enterprises (including individual businesses) with annual sales revenue of less than 20 million yuan, all tax will be deferred. For small and medium manufacturing enterprises with annual sales revenue of 20 million to 400 million yuan, the tax will be deferred at a rate of 50%. Enterprises with special difficulties may apply for full tax exemption in accordance with the law.
From November 1st 2021 to the end of the application period in January 2022, the tax exemption is expected to reach about 200 billion yuan for small and medium manufacturing enterprises.
In addition, to ease the operating difficulties of coal power and heat supply enterprises, the payment of tax in the 4th quarter of this year will be postponed. The above measures will be deferred for up to three months.