Thirty-one provinces, autonomous regions and municipalities continue to maximize the cutting of “six local taxes and two fees”

With the consent of local governments, fiscal and tax departments of 31 provinces (autonomous regions and municipalities) have recently issued announcements, specifying that small-scale VAT taxpayers, small and low-profit enterprises and individual businesses will be subject to a maximum reduction of 50 percent of the “six local taxes and two fees”. Five municipalities with independent planning status, Dalian, Qingdao, Ningbo, Xiamen and Shenzhen, shall implement it in accordance with the provisions of their provinces. 

"Six local taxes and two fees" refers to resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp tax (excluding stamp tax on securities transactions), farmland occupation tax and education fee surcharge, local education surcharge. In January 2019, in accordance with the deployment of the CPC Central Committee and the State Council, the Ministry of Finance and the State Taxation Administration issued an announcement, specifying that small-scale VAT taxpayers can be reduced the “six local taxes and two fees” within the tax range of 50 percent. The policy was implemented from January 1, 2019 to December 31, 2021. At that time, the 31 provinces, autonomous regions and municipalities all reduced “six local taxes and two fees” by 50 percent. 

In February, with the consent of the State Council, National Development and Reform Commission, State Taxation Administration and other 14 department issued the announcement and put forward policy suggestions on promoting the recovery and development of hard-pressed industries in the service sector, and required that the application of the “six local taxes and two fees” policy should be extended from small-scale VAT payers to small and low-profit enterprises and individual businesses. 

On March 1, the Ministry of Finance and the State Taxation Administration announced that the implementation period of the “six local taxes and two fees” policy will be extended to December 31, 2024, and the subject will be expanded from small-scale taxpayers to small and low-profit enterprises and individual businesses which further expanded the scope of market entities enjoying this policy. The announcement made it clear that the amount of tax will be reduced by 50 percent for small-scale taxpayers, small and low-profit enterprises and individual businesses, as determined by the people’s governments of provinces, autonomous regions and municipalities in light of the actual conditions of their regions and the needs of macro-control.

Source from State taxation administration of the P.R.C.
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