The Ministry of Finance ("MOF") and the State Taxation Administration ("STA") jointly released on August 2, 2023 the Announcement of Tax Policies Supporting Micro and Small Businesses to Finance (No.13 (2023) Document), which extends the relevant policies to December 31, 2027.
As a follow-up policy of the MOF and STA No.77 (2017) document, the Announcement continues the related preferential policies, including exempting the value-added tax (VAT) on interest income earned by financial institutions from granting small loans to micro and small businesses and self-employed households, and exempting the stamp duty on the loan contracts signed between financial institutions and micro and small businesses.
The two regulators issued on the same day the Announcement on the Exemption of VAT on Interest Income of Financial Institutions from Granting Loans to Micro and Small Businesses (No.16 (2023) Document), and the Announcement on Continuing the VAT Policy for Provision of Financing Guarantee to Farmers, Micro and Small Businesses and Self-employed Households (No.18 (2023) Document), which extend the policy of exempting VAT on interest income earned by financial institutions from granting small loans to micro and small businesses and self-employed households as stipulated in the MOF and STA No.91 (2018) document and the policy of exempting VAT on income earned from provision of financing guarantee as stipulated in Article 6 of the MOF and STA No.90 (2017) document to December 31, 2023, respectively.