China's Ministry of Finance and State Administration of Taxation have jointly issued Announcement No. 12 of 2021, which provides an income tax reduction for small and low-profit businesses and sole traders. This includes that for the portion of annual taxable income of small low-profit businesses not exceeding CNY 1 million, the reduced taxable portion provided by Notice 13/2019 is further reduced by half. As such, 12.5% (down from 25%) of taxable income up to CNY 1 million is subject to tax…