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Economics

China Extends Income Tax Cuts in Push to Stabilize Growth

  • Some measures to benefit high earners more, analyst says
  • Nation gearing up for busy Lunar New Year shopping season

China will extend some personal income tax breaks, with certain measures to benefit high earners more, as the government seeks to encourage household spending as part of efforts to stimulate economic growth.

Preferential taxes on year-end bonuses will stay in place till the end of 2023, lower taxation on equity incentives will continue through 2022 and exemptions on some tax payments will be given to low income earners, according to a State Council statement released Wednesday.