VAT Tax Free Quota Raised增值税免税额度增加
Delivered at the Fourth Session of the 13th National People’s Congress of the People’s Republic of China on March 5, 2021, Mr. Li Keqiang, Premier of the State Council, did the Report of the Work of Government.
2021年3月5日在第十三届全国人民代表大会第四次会议上，国务院总理李克强做了政府工作报告
In this report, there is a specific plan of the VAT free quota for small-scale taxpayer:
Tax reduction: the VAT threshold for small-scale taxpayers will be raised from 100,000 yuan to 150,000 yuan in monthly sales.
在报告中明确指出小规模纳税人的增值税免税额度有变化
减税：将小规模纳税人增值税起征点从月销售额10万元提高到15万元
Reindeer Station has been helping our business client filing their tax for years. Last month, we posted an article about VAT tax caused accounting issues. Now, the sign is clear. First, the tax reduction is a major move to stimulate the economy for small scale enterprise. It is applicable for both domestic and foreign business.
灵达商务近年来帮助众多商务客户报税。上月，我们推送了关于增值税避税带来的财务问题。如今，政策导向明确。首先，减税是刺激经济发展，鼓励小规模企业主经营的重要举措。这对于外资小规模纳税人同样适用。
The increase of the VAT tax free quota is an encouragement for you to bring the business to normal operation. To avoid tax, especially foreign direct investment, there had been several ways of transferring offshore money. For example, directly to individuals, who are entitled of $50,000 quota under the name of remuneration. However, it has now be closely monitored, just find a random person to help you transfer money is not viable anymore. Therefore, start up a legitimate company with normal operation strictly follow the rules is the best choice for money transferring.
增值税免税额度的增加也是鼓励外资小规模纳税人将公司经营正规化的一种举措。为了避税，尤其是外资，有几种方式将海外资金转入境内。其中一种就是通过个人账户，每个国内的自然人一年有5万美金的外汇额度，一般只能以薪资的方式汇入。然而，这项手段如今是被严密监管的，随意找一个朋友帮忙把钱转进来已经没那么容易了。因此，设立公司并严格遵守各项政策成为了最佳的外汇入境手段。
Under the latest VAT quota, a typical FDI small scale taxpayer can enjoy RMB1,800,000 ($28,000) tax free income to cover normal operation. Compare to the situation without the VAT exempt quota, you can save up to RMB 1,800,000*3%(VAT rate)=RMB 54,000. Meanwhile, the current VAT rate is 1% as policy favor, so up to RMB18,000.
根据最新的增值税免税额度，一家典型的外资小规模纳税人可享受年收入180万人民币(2.8万美元)的免税外资收入。与没有免税额度时对比，能最多节省1,800,000*3%=54,000元。同时，当下的增值税税率有优惠，为1%，所以最多可节省18,000元。
Contact us for more on tax in China
Reference: People’s Daily
English& Chinese: Anna
Delivered at the Fourth Session of the 13th National People’s Congress of the People’s Republic of China on March 5, 2021, Mr. Li Keqiang, Premier of the State Council, did the Report of the Work of Government.
2021年3月5日在第十三届全国人民代表大会第四次会议上，国务院总理李克强做了政府工作报告
In this report, there is a specific plan of the VAT free quota for small-scale taxpayer:
Tax reduction: the VAT threshold for small-scale taxpayers will be raised from 100,000 yuan to 150,000 yuan in monthly sales.
在报告中明确指出小规模纳税人的增值税免税额度有变化
减税：将小规模纳税人增值税起征点从月销售额10万元提高到15万元
Reindeer Station has been helping our business client filing their tax for years. Last month, we posted an article about VAT tax caused accounting issues. Now, the sign is clear. First, the tax reduction is a major move to stimulate the economy for small scale enterprise. It is applicable for both domestic and foreign business.
灵达商务近年来帮助众多商务客户报税。上月，我们推送了关于增值税避税带来的财务问题。如今，政策导向明确。首先，减税是刺激经济发展，鼓励小规模企业主经营的重要举措。这对于外资小规模纳税人同样适用。
The increase of the VAT tax free quota is an encouragement for you to bring the business to normal operation. To avoid tax, especially foreign direct investment, there had been several ways of transferring offshore money. For example, directly to individuals, who are entitled of $50,000 quota under the name of remuneration. However, it has now be closely monitored, just find a random person to help you transfer money is not viable anymore. Therefore, start up a legitimate company with normal operation strictly follow the rules is the best choice for money transferring.
增值税免税额度的增加也是鼓励外资小规模纳税人将公司经营正规化的一种举措。为了避税，尤其是外资，有几种方式将海外资金转入境内。其中一种就是通过个人账户，每个国内的自然人一年有5万美金的外汇额度，一般只能以薪资的方式汇入。然而，这项手段如今是被严密监管的，随意找一个朋友帮忙把钱转进来已经没那么容易了。因此，设立公司并严格遵守各项政策成为了最佳的外汇入境手段。
Under the latest VAT quota, a typical FDI small scale taxpayer can enjoy RMB1,800,000 ($28,000) tax free income to cover normal operation. Compare to the situation without the VAT exempt quota, you can save up to RMB 1,800,000*3%(VAT rate)=RMB 54,000. Meanwhile, the current VAT rate is 1% as policy favor, so up to RMB18,000.
根据最新的增值税免税额度，一家典型的外资小规模纳税人可享受年收入180万人民币(2.8万美元)的免税外资收入。与没有免税额度时对比，能最多节省1,800,000*3%=54,000元。同时，当下的增值税税率有优惠，为1%，所以最多可节省18,000元。
Contact us for more on tax in China
Reference: People’s Daily
English& Chinese: Anna
