(Economic Observation) China implements phased tax deferral to help companies bail out

　　China News Agency, Beijing, December 1 (Reporter Zhao Jianhua) Starting from November 1, China has implemented phased tax deferral measures for small, medium and micro enterprises in the manufacturing industry.

According to data released by the State Administration of Taxation, in the first month of the policy implementation (November 1-30), manufacturing small, medium and micro enterprises accumulated 47.14 billion yuan in deferred taxes and fees (RMB, the same below).

　　The State Council executive meeting held at the end of October decided to implement a phased tax deferral for small, medium and micro manufacturing enterprises in the fourth quarter of this year.

It is estimated that the tax will be delayed by about 200 billion yuan for small, medium and micro enterprises in the manufacturing industry.

　　Li Ping, deputy director of the Institute of Taxation Science of the State Administration of Taxation, introduced that the tax deferred payment policy introduced this time covers a wide range of taxes and fees, and offers great incentives.

This time, it is for small, medium and micro manufacturing enterprises with annual sales of less than 400 million yuan to postpone the payment of some taxes and fees in the fourth quarter, including sole proprietorships, partnerships, and individual merchants.

Taxes and fees delayed in payment include corporate income tax, personal income tax (except withholding and payment), domestic value-added tax, domestic consumption tax and additional urban maintenance and construction tax, education surcharge, and local education surcharge.

For medium-sized enterprises with annual sales of more than 20 million yuan and less than 400 million yuan, the payment of taxes and fees within the scope of the policy can be postponed by 50%; for small and micro enterprises with annual sales of less than 20 million yuan, the payment can be postponed. All taxes and fees within the scope.

　　With the implementation of the policy, small, medium and micro enterprises in the manufacturing industry have gained benefits.

Guo Xiaohuan, the head of finance of Henan Youde Medical Equipment Co., Ltd., said: “The tax deferral policy is expected to release more than 700,000 yuan in taxes in the fourth quarter. This money is held in hand and will greatly help the development of the enterprise.”

　　Entering the fourth quarter, the pressure on corporate funds to withdraw from circulation has increased.

Gao Feng, the person in charge of Hebei Baicao Kangshen Pharmaceutical Co., Ltd., said: "The tax deferral policy is equivalent to a short-term interest-free loan. It is estimated that the tax payment of 890,000 yuan will be deferred, which will reduce the financial pressure on our follow-up development."

　　In Zhejiang, where manufacturing small, medium and micro enterprises are densely distributed, Bu Jianglian, a financial officer at Hangzhou Qianlong Electrical Appliance Co., Ltd., said that in the first month of the implementation of the New Deal, the company enjoys more than 1 million deferred payment of various taxes and fees such as value-added tax and urban construction tax.

　　The executive meeting of the State Council held at the end of October also decided to defer the payment of taxes realized in the fourth quarter of this year in order to alleviate the operating difficulties of coal power and heating enterprises.

According to data released by the State Administration of Taxation, as of November 30, more than 4,800 coal-fired power and heating enterprises across the country have handled a total of 21.51 billion yuan in tax reductions, refunds, and deferrals.

Among them, a total of 6.55 billion yuan in tax reduction and exemption, and 14.96 billion yuan in delayed tax rebates.

　　Tang Jiqiang, a professor at Southwestern University of Finance and Economics and chief researcher of the West Finance Think Tank, analyzed that the implementation of tax deferrals for small, medium and micro enterprises in the manufacturing industry, coal power and heating enterprises is due to high commodity prices and sharp rise in production costs. In the context of the adverse effects of industrial enterprises, the important measures taken by the government to help enterprises relieve their difficulties are conducive to stabilizing market expectations and employment, and promoting the smooth operation of the industrial economy.

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