Key tax updates for the end of 2020
Christmas is coming and to focus on spending it with the loved ones without concerns about the tax bureau please see the following updates and make sure you have everything in place before 2020 ends.
Social security contribution
Currently running social security exemption police for small, medium, and micro-enterprises will be over by the end of December 2020.
Make sure to not miss the deadline for the declaration and payment of social security. Please note that the collection from the tax bureau varies from place to place.
At the moment, Beijing and Shanghai declaration needs to be done in the current month and paid in the next month.
General taxpayers convert to small taxpayers’ policy
Opportunity to change from general taxpayer to small taxpayer will end on December 31st, 2020
Small taxpayers’ benefits:
- Monthly sales not exceeding 100,000 or quarterly sales not exceeding 300,000 can be exempted from VAT.
- Since February 1, 2020, small taxpayers (except individuals) can issue their own special VAT invoices. (Golden tax system and the facility is required)
If you are eligible and whose customers do not have high requirements for VAT invoices can consider switching to small taxpayers to enjoy the benefits, however, it needs to be done before December 31st, 2020
Individual income tax benefits
Individual Income tax exemptions for allowance for prevention COVID19 and control supplies will expire on December 31, 2020.
Stamp duty benefits
From January 1, 2018, to December 31, 2020, the loan contracts signed between financial institutions and small and micro enterprises are exempt from stamp duty.
Please note that there is no renewal at the moment for the above-mentioned policies.
Feel free to contact us if you have any additional questions.
