Small and micro businesses get extension on VAT exemption
Financial institutions who loan to farmers, micro firms and individually-owned businesses will also see break on interest income
The Ministry of Finance and State Administration of Taxation co-released a notice to extend the exemption of value-added tax (VAT) on small and micro-enterprises, the Economic Information Daily reported.
Small-scale taxpayers with monthly sales between 20,000 yuan to 30,000 yuan will continue to be exempted from value-added tax from January 1, 2018 to December 31, 2020.
Meanwhile, in order to support financing for these enterprises, financial institutions who loan to farmers, small and micro companies and individually-owned businesses will be exempted from VAT for the interest income from December 1, 2017 to December 31, 2019.
Stamp duty on loan contracts signed between financial institutions and small business is also exempted.