As a renewed tax reduction policy for small and micro businesses is adopted in Shanxi, 41,400 enterprises will benefit, saving 103 million yuan (about $165.48 million), according to the Shanxi Provincial Office of State Administration of Taxation on June 24.
Small and micro enterprises with taxable income of 100,000 yuan (about $16,065) or less in Shanxi are allowed a 50 percent reduction from Jan 1, 2014, to Dec 31, 2016, the policy says.
China's State Council decided in 2011 that any company with annual taxable income under 60,000 yuan (about $9,640) would get a 50 percent reduction in business income tax during 2012-2015.
In the first quarter of 2014, 18.6 million yuan (about $2.99 million) was saved by small and micro enterprises whose taxable income was under 60,000 yuan.
For companies that have not been covered before, they will be added into the expanded policy before tax-free liquidation of the year.
The tax cuts can further promote small and micro businesses in Shanxi to grow, accelerate economic growth and expand social employment.
