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China to ease tax burdens for private enterprises

Source: Xinhua| 2018-11-19 23:23:10|Editor: Li Xia
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BEIJING, Nov. 19 (Xinhua) -- China will take solid steps to relieve the tax burdens for private enterprises to support better development of private businesses.

The burden of taxes and fees on private enterprises will be further eased, according to a guideline recently released by the State Administration of Taxation (SAT) on supporting the private sector.

The guideline outlined 26 detailed measures to facilitate the development of private businesses, including advancing substantial tax cuts, especially the reduction of value-added taxes, working on tax exemptions for micro and small firms as well as technology startups, and promoting the reduction of nominal rates for social security contributions.

Measures will also be taken to address the difficulty and high costs of financing for private firms, simplify tax payment procedures and level the playing field for private businesses.

"China's taxation authority has always treated private enterprises equal," said Huang Yun, a senior SAT official.

Huang said micro and small firms enjoyed 143.7 billion yuan (20.7 billion U.S. dollars) of tax exemptions in the first three quarters, rising 41.3 percent year on year.

The private sector plays an important role in the Chinese economy, contributing more than 50 percent of tax revenue, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and new firms.

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