China cut over $305 bln of taxes and fees in 2023

China has cut more than 2.2 trillion yuan ($305 billion) of taxes and fees last year, with a significant rise of tax deduction on the research and development for enterprises, said the State Taxation Administration on Thursday.

Companies have enjoyed an additional tax deduction for research and development expenses, a tax measure to encourage corporate innovation, that hit 1.85 trillion yuan in the first three quarters, up 13.6 percent year-on-year, the tax authority disclosed, adding that the whole-year figure will be bigger.

Among those companies, taxpayers from the manufacturing sector benefited most, with 1.1 trillion yuan of tax deduction, accounting for nearly 60 percent of the total, it said.

The STA also said that the full-year tax income, which excludes the export tax rebate, reached 31.7 trillion yuan. The income of social security fees was 8.2 trillion yuan.