China's Ministry of Finance: Optimize the tax and fee reduction policies to enhance the vitality of market players
China News Service, Beijing, June 17 (Reporter Zhao Jianhua) In recent years, China has continued to implement large-scale tax cuts and fee reductions, combining institutional arrangements with phased policies and temporary measures.
During the "13th Five-Year Plan" period, the cumulative tax cuts and fees exceeded 7.6 trillion yuan (RMB, the same below), which played an important role in stimulating innovation vitality, optimizing economic structure, promoting residents' consumption and expanding employment.
The Ministry of Finance of China introduced on the 17th that this year's main purpose is to further optimize and implement the tax and fee reduction policies to help market players recover their vitality and increase vitality.
Specific measures include:
——Continue to implement the systemic tax reduction policies introduced in recent years, such as lowering the value-added tax rate, value-added tax rebate, special additional deductions for personal income tax, etc., so as to continue to release the overlapping effects of policies.
—— In response to the introduction of a phased tax and fee reduction policy to respond to the epidemic in 2020, classification adjustments and orderly withdrawals will be made.
Continue to implement policies such as the reduction of value-added tax for small-scale taxpayers, and maintain the necessary support for economic recovery.
Temporary and emergency policies involving epidemic prevention, control, and guarantee supply will cease to be implemented after expiration.
——While implementing the inclusive tax and fee reduction policy for small and micro enterprises, further increase the tax reduction and exemption for small and micro enterprises and individual industrial and commercial households, and set the minimum value-added tax for small-scale taxpayers from monthly sales of 100,000 yuan Increase to 150,000 yuan; for small and micro enterprises and individual industrial and commercial households whose annual taxable income is less than 1 million yuan, on the basis of the current preferential policies, the income tax will be halved.
——Continue the implementation of the 75% deduction policy for corporate R&D expenses, increase the percentage of manufacturing companies’ additional deductions to 100%, and encourage companies to increase R&D investment.
For advanced manufacturing enterprises, the incremental value-added tax will be refunded in full on a monthly basis.
——Continue to clean up and standardize fee funds.
Intensify efforts to rectify various types of illegally-related corporate fees, strictly control the unreasonable growth of non-tax revenue, and prevent the weakening of the dividends of tax and fee reduction policies.
The Ministry of Finance also announced on the 17th that as of June 15th, local governments across the country had issued a total of 1,285 billion yuan of new local government bonds, accounting for 30% of the quota already issued.
The issuance progress this year has slowed down compared with the same period last year, mainly due to the larger scale of special bonds to be issued in 2020, and the policy effects will continue to be released this year.
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