China to cut more taxes to support small and high-tech firms

FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017.     REUTERS/Thomas White/Illustration/File Photo

US-CHINA-ECONOMY-TAX:China to cut more taxes to support small and high-tech firms

BEIJING (Reuters) - China will further reduce taxes to support small firms and high-tech companies, state radio quoted the cabinet as saying on Wednesday, with seven measures expected to result in cuts of more than 60 billion yuan ($9.5 billion).

The measures included a rise in the threshold on taxable income for small firms to 1 million yuan from 500,000 yuan and preferential tax deductions for firms' purchases of equipment for research and development, it said.

Venture capital investment and start-up technology firms would also get tax incentives, state radio said.

Last month, the government unveiled value-added tax cuts amounting to 400 billion yuan, following pledges by Premier Li Keqiang to cut taxes for firms and individuals by more than 800 billion yuan this year.

The cabinet also called for banks to strive for a significant cut in financing costs for small firms by the end of September, state radio said.

(Reporting by Beijing Monitoring Desk and Kevin Yao; Editing by Nick Macfie)

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