China Provides Additional Income Tax Reduction for Small Taxpayers

China's Ministry of Finance and State Administration of Taxation have jointly issued Announcement No. 12 of 2021, which provides an income tax reduction for small and low-profit businesses and sole traders. This includes that for the portion of annual taxable income of small low-profit businesses not exceeding CNY 1 million, the reduced taxable portion provided by Notice 13/2019 is further reduced by half. As such, 12.5% (down from 25%) of taxable income up to CNY 1 million is subject to tax…