Tax Deferral for SMEs

Recently, the State Taxation Administration ("STA") and the Ministry of Finance ("MOF") have issued the Announcement on Matters Concerning the Continued Deferral of Some Taxes and Fees for Medium, Small and Micro Manufacturing Enterprises (the "Announcement"), with effect on the date of issuance.

According to the Announcement, from September 1, 2022, those medium-sized manufacturing enterprises that have enjoyed deferral in payment of 50% of taxes and fees and small and micro manufacturing enterprises that have deferred payment all taxes and fees under the Announcement of the State Taxation Administration and the Ministry of Finance on Relevant Matters Concerning Extending the Deferral of Some Taxes and Fees for Medium, Small and Micro Manufacturing Enterprises, will be granted another four months of grace period upon the expiration of the previous deferment period. The Announcement clarifies that the deferred taxes and fees include the enterprise income tax, individual income tax, domestic value-added tax, domestic consumption tax and the additional urban maintenance and construction tax, education surcharge, and local education surcharge that have been deferred for payment as required during the period including November and December 2021, February, March, April, May, June 2022 (paid on a monthly basis) or the fourth quarter of 2021, the first and second quarters of 2022 (paid on a quarterly basis), excluding taxes withheld and paid on behalf of others, taxes collected and paid on behalf of others, and taxes and fees paid when applying to tax authorities for invoicing on behalf of others.

Source:http://www.chinatax.gov.cn/chinatax/n810341/n810825/c101434/c5181400/content.html