BEIJING, Jan. 18 (Xinhua) -- China stepped up tax and fee reductions for businesses to boost market vitality last year, official data showed Thursday.
Newly implemented tax refunds, as well as cuts and deferrals of taxes and fees, exceeded 2.2 trillion yuan (about 309.1 billion U.S. dollars) in 2023, Rao Lixin, deputy head of the State Taxation Administration, told a press conference.
The measures have effectively helped stabilize expectations and improve market confidence and vitality, he said, adding that the administration optimized services for the private economy, in particular micro, small and medium-sized enterprises.
More favorable tax policies have been implemented to encourage technological innovation. Taxpayers now enjoy a 100 percent tax deduction for research and development (R&D) expenses, up from the previous 75 percent introduced last year.
During the first three quarters of 2023, businesses applied for tax deductions for R&D costs totaling 1.85 trillion yuan, marking a 13.6 percent increase from a year ago. Of the total, nearly 60 percent of these deductions were claimed by the manufacturing sector.
The targeted and tangible tax policies have boosted confidence among businesses to invest in innovation, Rao said.
China's total tax and fee incomes reached 31.7 trillion yuan last year, including 15.9 trillion yuan of tax revenue and 8.2 trillion yuan of social insurance premium income.
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