China News Service, Beijing, March 23 (Reporter Zhao Jianhua) In recent years, China has introduced a series of preferential tax policies to support the development of small and micro enterprises, technological innovation and related social undertakings.
On the 23rd, the Ministry of Finance and the State Administration of Taxation announced that they would extend the implementation period of relevant tax preferential policies.
China stipulates that newly-purchased equipment and appliances with a unit value of no more than RMB 5 million are allowed to be included in the current cost and deducted when calculating the taxable income.
If the R&D expenses actually incurred by the enterprise during the R&D activities that have not formed intangible assets are included in the current profits and losses, on the basis of deductions according to the regulations, 75% of the actual amount incurred will be deducted before tax; if the intangible assets are formed , During the above-mentioned period, it is amortized before tax at 175% of the cost of intangible assets.
The value-added tax shall be refunded in full for domestic-made equipment purchased by domestic-funded R&D institutions and foreign-funded R&D centers.
The taxpayer's production and sales of new regional aircraft will temporarily reduce the value-added tax at 5%.
Domestically produced anti-HIV drugs are exempted from value-added tax in the production and circulation links.
The shale gas resource tax (at the prescribed rate of 6%) is reduced by 30%.
The Ministry of Finance and the State Administration of Taxation announced that if the above tax preferential policies have expired, the implementation period will be extended to December 31, 2023.
At the same time, policies such as exemption of value-added tax on heating fee income obtained by heating companies from heating individual residents will be extended to the end of the heating period in 2023.
In order to help fight poverty, the Ministry of Finance and the State Administration of Taxation issued preferential tax policies on relocation for poverty alleviation and relocation in 2018.
The implementation period of these policies will be extended to December 31, 2025.
In the financial sector, China has also introduced policies for the pre-tax deduction of corporate income tax on reserves.
These policies will continue to be implemented after they expire.
Including the insurance protection fund paid by insurance companies in accordance with relevant regulations, allowing for deductions based on actual pre-tax: After financial companies classify agricultural loans and SME loans, the loan loss reserves accrued in accordance with the corresponding proportions are allowed to be calculated Taxable income is deducted, etc.
(Finish)