China’s Ministry of Finance and the State Administration of Taxation announced on Tuesday a tax relief measure for small and micro enterprises, the China Securities Journal reported Wednesday. Under the move, small and micro firms that have annual tax liability of less than 100,000 yuan (US$16,138) will enjoy 50 percent discount on their taxable income, before being assessed for profit tax at a rate of 20 percent. The rule will cover the period from Jan 1, 2014 to Dec 31, 2016, according to the report. Government sources were quoted as saying that the move is aimed at supporting small and micro enterprises that are facing a challenging economic situation, and to boost domestic employment.
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