Private enterprises accounted for 70% of the corporate savings generated by tax cuts in Shenzhen, according to the city’s tax bureau.
In Q1, a new micro-enterprise inclusive tax reduction policy saved RMB1.354 billion, while a new personal income tax reduction policy saved RMB10.15 billion for individuals. The VAT rate, which was lowered on May 1 last year, generated RMB2.183 billion in savings, while interest income was also exempt for SMEs, saving RMB687 million.
Manufacturers benefited the most from the new policy, saving RMB3.9 billion in tax, accounting for 27.1% of the total reduction.
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