Recent Important Regulation Highlight

Tax Deferral for Manufacturing SMEs for Q4 2021

The State Administration of Taxation (SAT) and the Ministry of Finance have recently issued Public Notice 2021 No. 30 jointly to allow the deferral of some taxes for medium, small and micro manufacturing enterprises for Q4 2021, which implementing from 1 November 2021. The Notice specifies that after tax declaration the medium-sized manufacturing enterprises (with annual sales turnover more than RMB 20 Million less than RMB 400 Million) may defer 50 percent, while small and micro manufacturing enterprises (with annual sales turnover less than RMB 20 Million) may fully defer all relevant taxes. The deferral period will be three months. The relevant taxes include corporate income tax, individual income tax (excluding withholding tax), domestic value added tax, domestic consumption and the supplementary urban maintenance and construction tax, education surcharge and local education surcharge for October to December 2021.

Shanghai Continues the VAT Threshold

On 2 November 2021, Shanghai Taxation Bureau issued a notice to continue to implement the policy of VAT threshold. For periodic declaration, the threshold is monthly taxable sales of RMB 20,000; for declaration by time, the threshold shall be RMB 500 for each (day) time.