China: New Tax Deduction Measures
A number of new measures to reduce taxes in several areas were announced by the Premier of China on April 19, 2017. The intent of the new measures is to stimulate economies by simplifying value-added tax (VAT), reducing related tax rates to three categories. Additionally they introduce incentives for smaller, low-profit businesses and businesses involved in research and development. A further tax deduction is provided for certain special businesses, such as technology start-ups, established in specific areas in mainland China.