61 bln yuan of taxes reduced for China's small firms

Tax breaks for small and micro-sized businesses in China amounted 61.2 billion yuan (10 billion U.S. dollars) in 2014, the State Administration of Taxation (SAT) revealed.

Business income tax of 10.1 billion yuan was reduced or scrapped from 2.46 million small and micro businesses, as companies with annual taxable business income below 100,000 yuan were eligible to a 50 percent reduction.

Value added tax and turnover tax cuts were worth more than 51.1 billion yuan from 22 million small and micro businesses through a temporary suspension for certain small firms from Aug. 1, 2013, to Sept. 30, 2014, according to SAT.

China has expanded preferential tax policies for small companies and reduced their tax burden to boost economic growth and employment. Nearly 80 percent of urban jobs are provided by small companies.