China Monthly Tax Brief: May 2025In this China Monthly Tax Brief for May 2025, we highlight key taxation developments for businesses. Tax incentives: Preferential value-added tax (VAT) policies continue, including exemption from VAT on interest income from micro and small business loans (per Cai Shui [2023] No. Targeted support: Financing will be preferentially directed to “little giants” (专精特新企业), cross-border e-commerce firms, and other prioritized sectors. Evaluate eligibility for ongoing tax incentives and maintain supporting documentation. Tax incentives rolled out for Chengdu 2025 World GamesTo support the organization of the 12th World Games in Chengdu, China’s Ministry of Finance, General Administration of Customs, and STA issued favorable tax policies (Cai Shui [2025] No.