China raises VAT registration threshold

China has raised its VAT registration threshold from 1 January 2019 from CNY30,000 to CNY100,000 for small businesses. The measure is temporary for the next two years.

The move is part of a range of tax incentives to help prop-up the economy in the face of a slowing global economy and from the effects of international tariff increases. Other measures include:

• Cuts in stamp duty
• Reduction in local education taxes on businesses
• Cut in corporate income tax for small companies from 25% to 20%