In order to help market entities bail out and stimulate vitality, and promote stable growth and employment, China will implement a large-scale tax and fee reduction policy this year.
The third wave of specific new policies has been clarified.
The executive meeting of the State Council held recently confirmed a package of tax and fee reduction policies for industry and service industries, especially industries with special difficulties.
These policies include extending the tax deferral policy for small, medium and micro enterprises in the manufacturing industry, speeding up the depreciation period for equipment and appliances purchased by small, medium and micro enterprises, and increasing tax and social security fee reductions for industries with special difficulties such as catering, retail, tourism, and transportation.
Not long ago, the State Council clarified twice this year's burden reduction measures, mainly to continue the tax preferential policies such as the separate tax calculation of year-end awards, technology, employment and entrepreneurship, and medical care.
Shi Zhengwen, director of the Fiscal and Taxation Law Research Center of China University of Political Science and Law, told Yicai that the successive introduction of tax and fee reduction policies this year will help guide market expectations and enhance the development confidence of market players.
One of the features of this year's combined tax reduction and fee reduction policy is that it is more precise and efficient, mainly targeting small, medium and micro enterprises, manufacturing, and difficult industries, which is conducive to stabilizing employment.
At the same time, there are a wide range of taxes and expenses involved, and there are many means and methods, and the intensity is constantly increasing, so as to better help enterprises to bail out and develop.
"At present, affected by the epidemic situation at home and abroad, industries such as industry and service industries are still facing great challenges. Therefore, the tax and fee reduction policies determined by the State Council executive meeting will ensure a good start for the macro economy in 2022 and achieve stable growth. Progress has positive significance." Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, told Yicai.com.
Over 200 billion yuan in tax deferred extension
The above-mentioned executive meeting of the State Council made it clear that the tax deferred policy for small, medium and micro enterprises in the manufacturing industry will be extended.
Last year, due to the impact of rising commodity prices and rising production costs, the manufacturing industry was hit hard. In order to bail out the manufacturing industry, some taxes and fees were suspended for small, medium and micro enterprises in the manufacturing industry in the fourth quarter of last year.
According to data from the State Administration of Taxation, this move has deferred tax payments of 216.2 billion yuan for small, medium and micro enterprises in the manufacturing industry.
Relevant enterprises need to pay the deferred tax in the fourth quarter of last year in the first half of this year.
Shi Zhengwen said that since the current stable recovery of the industrial economy is still not solid, the tax deferred policy for small, medium and micro enterprises in the manufacturing industry will be extended again.
This is equivalent to the state giving enterprises an interest-free loan to ease the financial pressure of enterprises.
The specific extension time needs to be determined according to the industrial economic situation, the recovery of enterprises, the epidemic situation, etc., and it may be extended for another quarter.
According to the previous tax deferral policy for small, medium and micro enterprises in the manufacturing industry, first of all, the beneficiaries must belong to the manufacturing category and have an annual sales volume of less than 400 million yuan.
Deferred taxes include corporate income tax, personal income tax (excluding withholding and payment), domestic value-added tax, domestic consumption tax, and supplementary urban maintenance and construction tax, education surcharge, local education surcharge, etc.
The above meeting made it clear that the scope of application of the local "six taxes and two fees" reduction and exemption policy will be expanded to all small and low-profit enterprises and individual industrial and commercial households.
Previously, the state allowed provincial (autonomous regions and municipalities) governments to reduce “six taxes and two fees” within 50% of small-scale VAT taxpayers, namely resource tax, urban maintenance and construction tax, stamp tax, urban land use tax, and cultivated land occupation. Taxes and other local taxes, education surcharges, and local education surcharges.
All provinces have reduced the "six taxes and two fees" at a maximum rate of 50%.
Shi Zhengwen said that this time, the "six taxes and two fees" benefited from small-scale taxpayers of value-added tax to all small and low-profit enterprises and individual industrial and commercial households, and the beneficiary group has expanded significantly.
Pre-tax deduction for equipment and appliances over 5 million is accelerated
The above meeting clarified that the reduction and exemption of income tax for the industrial and service industries will be increased. This year, the depreciation of equipment and appliances with a value of more than 5 million yuan for small and medium-sized enterprises will be deducted for 3 years, and the depreciation will be 4 years, 5 years, and 10 years. The annual deduction is halved.
Li Xuhong said that this move can increase the current income tax deduction items of the company, reduce the income tax burden, increase the company's cash flow, ensure the normal operation of the company, and promote the company's investment and expansion of reproduction.
Shi Zhengwen said that the current implementation regulations of the Enterprise Income Tax Law have corresponding depreciation periods for different fixed assets, such as the depreciation period of electronic equipment is 3 years, and the depreciation period of vehicles such as vehicles is 4 years.
Previously, in order to guide enterprises to increase investment in equipment and appliances, the state allowed a one-time deduction for equipment below 5 million yuan. On this basis, the above meeting shortened the depreciation period for equipment and equipment above 5 million yuan, but only for small and medium-sized enterprises. .
"For example, eligible small and medium-sized enterprises that purchase electronic equipment worth 6 million yuan need to deduct 2 million yuan each year for three consecutive years before the introduction of the above-mentioned policies. 10,000 yuan, you can pay less tax this year, which is actually a deferred tax payment, which increases the cash flow of the company and is equivalent to an interest-free loan from the state.” Shi Zhengwen said.
Catering and tourism industries with difficulties to support overweight
Although the economy has recovered steadily after the epidemic, the impact on the industry varies. Catering, retail, tourism, transportation, etc. have been hit hard, and the recovery is relatively slow.
The meeting decided to increase support for industries with special difficulties such as catering, retail, tourism, and passenger transportation, in terms of periodic tax reductions and exemptions, and deferred payment of some social security premiums, so as to promote stable employment and consumption recovery.
Shi Zhengwen believes that the previously expired preferential tax and fee policies for these special difficult industries will continue, and even increase support.
The above-mentioned meeting requires that in 2022, public transport services such as public transport and long-distance passenger transport, ferry, taxi and other public transport services will be exempted from value-added tax.
Continue to temporarily refund the tourism service quality deposit at the proportion of 80%.
For small and micro enterprises in the service industry and individual industrial and commercial households that lease state-owned houses, this year, they are listed as high-risk areas with a 6-month rent reduction, and other areas are exempted for 3 months.
All localities can provide appropriate assistance to small and micro enterprises in the service industry and individual industrial and commercial households that rent non-state-owned houses; for the owners of houses whose rent is reduced or exempted, the property tax and urban land use tax are reduced or exempted according to regulations.