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    Regulator to ensure small, micro firms benefit from new tax policies

    By Jing Shuiyu | chinadaily.com.cn | Updated: 2020-03-28 19:42
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    A shop owner changes pots for the plants purchased by customers in Xi'an, Shaanxi province, on March 24, 2020. [Photo/Xinhua]

    China has released many favorable tax policies to support small and micro businesses to ride out the epidemic and will ensure these measures can materialize, a senior official said on Saturday.

    For small restaurants and hotels, the owners can carry over a tax loss to eight years, instead of the previous five years, according to Wang Shiyu, deputy head of the State Administration of Taxation's tax policy and regulation department.

    The tax loss carryfoward policy allows business owners who realize large losses during market downturns to reduce gains recognized over many future years.

    Wang said quite a lot of the favorable tax policies that have been adopted were targeted to support small businesses.

    "All these measures will support small businesses," he added.

    Last year, the government rolled out large-scale tax and fee reduction policies. One policy stipulates that small-scale taxpayers, with a monthly income of less than 100,000 yuan ($14,096) and a quarterly income of less than 300,000 yuan, are exempt from value-added tax.

    In the future, tax authorities will implement the measures well and ensure small business owners can benefit from it, Wang said.

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