China halves corporate income tax for micro-sized business

China's Ministry of Finance (MOF) said that it will cut corporate income tax by half for micro-and-small-sized enterprises to facilitate their growth amid financial strains. The ministry deems enterprises with annual corporate income of no more than 60,000 yuan as micro-and-small-sized companies. The ministry said in a statement that after the adjustment, their tax base will be cut by 50 percent while the tax rate remains 20 percent, according to China''s (Xinhua) News Agency. The new policy will take effect between Jan. 1, 2012 and Dec. 31, 2015, The government announced a raft of measures this year to boost cash-strapped small businesses, including raising the threshold of value-added tax and exempting administrative fees.