2014-05-13 16:07:31

When filing income tax in May, businesses should beware of the 3 major changes in the minimum taxation. The standard tax deduction amount has been reduced from 2,000,000 to 500,000 and the tax rate has been increased to 12%. Along with the implementation of the taxation on incomes derived from securities and increasing minimum business tax, the tax on the stocks held for a period of three years or more by any profit-seeking enterprises can now be halved. Businesses holding stocks for a longer period of time can benefit from this tax decrease. To encourage long-term investment, the new tax regulation is implemented, where only half of the income from selling stock that one has been holding for over 3 years will be taxed. When calculating the amount of income from securities this year, for income from the stocks held for a period of over three and sold in 2013 years, if the balance after deducting the losses on securities transactions is positive, only one-half of the balance should be added into the current year’s income derived from securities transactions; if the balance is negative, the income from those securities is zero.