China extends tax reduction to construction and other sectors

Out-Law News | 25 Apr 2014 | 9:42 am |

Construction companies in China will be eligible to receive tax reductions if they employ people who have been out of work for more than one year, the state press agency Xinhua has reported.

The development is part of government policy to extend existing tax reductions for selected sectors to all companies across China, as Beijing tries to combat a slow down in its economy, Xinhua reported.

Zhang Bin, a tax expert with the Chinese Academy of Social Sciences described the tax breaks as "good news" for both business owners and the unemployed.

The move follows Beijing's announcement that China's experienced 7.4% economic growth year-on-year in the first quarter of this year – the lowest quarterly rise since the third quarter of 2012, according to Xinhua.

That compares to 7.7% in the fourth quarter of last year, according to the Financial Times.

Tax reductions for all larger companies follow an announcement by the Beijing that tax redcuctions for small and micro firms will be extended till the end of 2016.