A series of favorable tax policies are launched to support the development of small and medium sized technology enterprises, according to Li Yizhong, head of the Ministry of Industry and Information Technology.
Mainly, five policies are made. The government will set up a special foundation for the development of SMEs; the income tax payable of small enterprises will be reduced by half; the land use tax of SMEs is lower; and the tax payment of SMEs who face certain difficulties can be postponed. Meanwhile, the local finance departments around China would also strengthen their support for the SMEs. For example, a 15% tax rate is now provided for high tech enterprises that meet the High and New Technology Enterprises criteria. The HNTE criteria were enhanced recently to focus on providing the beneficial tax rate to only the top tier software and hardware businesses that provide unique services in China.
Actually , many measures have been taken in recent years to ease the burden of SMEs. For example, the enterprise income tax rate has been reduced from 33% to 25% and a preferential tax rate of 20% is now offered to small enterprises.
This news is from China mobile phone of China electronics manufacturer.