China State Council Approves Additional Tax Relief for Small Businesses and Incentives for Investment in High-Tech Start-Ups

On 9 January 2019, China's State Council reportedly decided on the introduction of new tax relief measures for small businesses, including:

• For businesses with taxable income below CNY 1 million, only 25% of taxable income will be subject to tax, and for businesses with taxable income above CNY 1 million but below CNY 3 million, 50% of taxable income will be subject to tax (similar relief currently applies with a 50% reduction for taxable income up to CNY 1 million); and
• The VAT threshold fo…