During a meeting of China's State Council on 18 August 2015, the decision was made to increase the taxable income threshold for small business tax relief from RMB 200,000 to RMB 300,000 with effect from 1 October 2015. This is the second increase to the threshold this year as the Council increased the threshold from RMB 100,000 to RMB 200,000 in February 2015, with effect from 1 January 2015.
Businesses with taxable income not exceeding the threshold are eligible to be taxed on 50% of their …