Over 70% tax support went to China’s private sector in 2023

Up to 2228.99 billion yuan tax incentives has been attributed to tax refunds, new taxes and fees cuts and deferrals in 2023, according to the data reported.

Taxpayers from private sector enjoyed 75.7% of the tax refunds, and new cuts and deferrals of taxes and fees. approximately 1.69 trillion yuan, the biggest beneficiaries of the tax incentives in 2023.

Manufacturing sector and its related wholesale and retailing took 949.53 billion yuan tax support from the tax incentives, the highest proportion of 42.6%.

Micro, small and medium-sized enterprises were benefited the most, saving about 1.43 trillion yuan, up to 64%.

650.98 billion yuan value-added tax cut and exemption went to small-scale taxpayers, while another 178.88 billion yuan to small and micro-enterprises. Innovative firms in advanced manufacturing, industrial machine, and integrated circuits sectors enjoyed 120.85 billion yuan value-added tax reductions and exemptions. 39.18 billion yuan were reduced or exempted with the newly implemented personal tax incentives.

 Source: STA General Office