China extends tax breaks to encourage rural financing

Updated 2017-06-14 10:05:36 Xinhua

China announced Tuesday it will continue tax breaks for financial institutions lending to rural households to support the development of financial services in the countryside.

Financial institutions will be exempt from value-added taxes for interest income from small loans to rural households from Jan. 1, 2017 to Dec. 31, 2019, according to a notice from the Ministry of Finance and the State Administration of Taxation.

In addition, only 90 percent of such income will be subject to income taxes, according to the notice.

Similarly, only 90 percent of insurance firms' premium income from policies sold to rural agricultural businesses will be taxable.

Under the preferential tax policy, small loans refer to loans of no more than 100,000 yuan (14,713 U.S. dollars) borrowed by a rural household at one time. Total outstanding loans for the household should also not exceed 100,000 yuan.

Outstanding loans to China's rural sector stood at 29.23 trillion yuan as of the end of the first quarter this year, up 8.9 percent year on year, according to the central bank.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58December 15 2017 22:13:56

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16December 15 2017 22:13:56

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18December 15 2017 22:13:56

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords