Tax cuts for small firms

Small companies with monthly sales revenue between 20,000 yuan ($3257.43) to 30,000 yuan will be exempted from value-added tax and business tax from October 1, 2014 to the end of 2015, the central government said on Wednesday.

The current policy exempts the two kinds of taxes for companies with monthly sales no more than 20,000 yuan.

The decision was made during a State Council meeting on Wednesday.

Beside tax exemption, the meeting also decided to simplify administrative approvals to clear hurdles for the development of small companies.