BEIJING -- China will carry out tax cuts for low-profit small businesses for three years to support their growth, the Ministry of Finance said on Friday.

From Jan 1, 2022 to Dec 31, 2024, the part of annual taxable income of low-profit small businesses that exceed 1 million yuan ($158,000) but does not exceed 3 million yuan will be counted as 25 percent of the actual amount at a tax rate of 20 percent, said a circular issued by the ministry and the State Taxation Administration.

Before the announcement, the authorities in March highlighted efforts to reduce six local taxes and two fees for small and micro businesses for three years.

Low-profit small businesses mentioned in this circular refer to legitimate enterprises with annual taxable incomes of less than 3 million yuan, no more than 300 employees, and total assets of less than 50 million yuan.