Financial institutions lending to small and micro enterprises get VAT exemption on interest since December

Date:2017-11-08

Ministry of Finance and State Administration of Taxation recently have recently issued the Tax Policies on Supporting Financing of Small and Micro Enterprises, specifying that financial institutions will pay no VAT on interest income from the loans of farmers, small and micro enterprises and private business owners from December 1, 2017 to December 31, 2019, in order to ease the financing difficulties of small and micro enterprises.


It also stressed that the financial institutions should keep relevant tax-exemption certificates for future reference and separately calculate the interest income of small-sum loans that meet the conditions for exemption from taxation. They shall file a tax return to tax authorities in accordance with current regulations. If not calculated separately, the interest income shouldn’t get VAT exemption.

SHARE TO:
Copyright Nanning Municipal Government All Rights Reserved.
englishinfo@nanning.gov.cn Your kindly feedback will be highly expected.
NANNING—CHINA
www.nanning.gov.cn 桂ICP备05000843