Tax breaks cover 85% of China's small firms

More than 85 percent of China's small and micro companies will enjoy preferential taxes as the government has extended tax breaks to boost economic vitality, according to the State Administration of Taxation (SAT) on Thursday. The rate was up from the previous 26 percent after the government decided earlier this month to raise the threshold up to 100,000 yuan (about 16,000 U.S. dollars) from 60,000 yuan, the administration said. According to the SAT, any company with annual taxable income under 100,000 yuan will have its business income tax halved starting from Jan. 1 this year till the end of 2016. Small and micro-sized enterprises have played a leading role in generating jobs in China. Over 70 percent of new jobs are created by 11.7 million such operations, according to a report released by the State Administration for Industry and Commerce. To ensure their healthy development, the State Council has sent seven inspection teams to 14 provinces and regions to see whether supportive tax and loan policies to small and micro-sized enterprises are being properly implemented