China’s State Taxation Administration has announced the introduction of preferential taxation on the total income earned from cross-border e-commerce retail exports by qualified e-commerce enterprises.
The tax will be 4 percent on the total income earned from the exports of retail goods and concerns the cross-border e-commerce retail export enterprises in pilot zones selected by the Chinese government. The measure is introduced to support the development of cross-border e-commerce and to promote the innovation of foreign trade. The announcement will enter into force on January 1, 2020.
The measure is applicable to cross-border e-commerce enterprises in the pilot areas that meet the following conditions:
If the cross-border e-commerce enterprise that has been approved for collection in the comprehensive test area meets the preferential policies of small-scale and low-profit enterprises, it can enjoy the preferential policy of small-scale and low-profit enterprise income tax.
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