It's about the private economy!, The latest announcement from the State Administration of Taxation on taxation, taxes, and economics

On August 6th, the State Administration of Taxation issued a notice on the continuation and optimization of the "Convenient Tax Spring Breeze Action" measures to promote the development and growth of the private economy and serve high-quality development. It also introduced and optimized 28 convenient tax payment measures in five aspects, promoting the better implementation and refinement of a series of new tax and fee preferential policies.

Take a look at the key measures:

1. Develop and distribute a list of tax and fee preferential policies and related guidelines to support the development and growth of small and micro enterprises and individual businesses, and improve the precise promotion mechanism of tax and fee policies.

2. For taxpayers who fail to timely enjoy the policy of additional deduction of research and development expenses during the tax collection period in July this year due to various reasons, they can supplement their enjoyment by changing the second quarter corporate income tax prepayment declaration in August and September.

3. Adopt measures to access and reuse 11 proof materials, such as the "Enterprise Financial Accounting System", to reduce duplicate submission of information, deepen the implementation of the "Individual Business Operator Identity Certificate" and other 12 tax certification matters notification and commitment system, and continuously optimize pre filling services for value-added tax, corporate income tax, personal income tax and other tax types.

4. Simplify the reporting of overseas investment and income information by enterprises, and reduce the frequency of submission; Optimize the service functions of electronic tax bureaus and international trade "single window", and promote the "free filling" of export tax refund invoices and export customs declaration information; Relying on the "the Belt and Road" tax collection and management cooperation mechanism, deepen the international tax cooperation of the "the Belt and Road".

5. Further optimize the sharing of credit information between banks and taxes, while ensuring data security and safeguarding the legitimate rights and interests of taxpayers, to help more private enterprises obtain financing support through "bank tax interaction" with good tax credit.

According to financial and tax experts, the fifth batch of 28 "convenient tax spring breeze action" measures launched this time is characterized by the introduction of some policy measures specifically designed to serve small and micro enterprises and individual businesses. The relevant policy measures are tailored for private economic entities, with strong targeting and strong service intensity, which will play a certain positive role in facilitating legal taxation and healthy development of private economic entities.

7 Measures to Strengthen Tax and Fee Preferential Policies for Direct Access to Quick Enjoyment

Private economy is the new force to promote Chinese path to modernization. According to data from the State Administration of Taxation, in the first half of this year, private economy taxpayers, including small and micro enterprises and individual businesses, added 704.9 billion yuan in tax reductions and deferred tax refunds, accounting for 76% of the total amount of new tax reductions and deferred tax refunds in China.

The latest fifth batch of "Convenient Tax Spring Breeze Action" measures closely follow the actual production and operation situation of private enterprises, and introduce 7 measures to further strengthen the implementation of tax and fee preferential policies, ensuring that policy dividends directly reach quick enjoyment.

Previously, the State Administration of Taxation, in conjunction with the Ministry of Finance, added the July prepayment declaration period as the time point for enjoying the policy of additional deduction of research and development expenses, promoting enterprises to increase investment in research and development innovation. In order to further enhance the convenience of enterprises to enjoy the above policies, the Notice specifies that for taxpayers who fail to timely enjoy the R&D expense deduction policy within the July tax collection period due to various reasons, they can supplement their enjoyment by changing the second quarter corporate income tax prepayment application in August and September.

Li Xuhong, Director of the Institute of Finance and Taxation Policy and Application at the National Accounting Institute of Beijing, believes that these measures will effectively promote taxpayers to enjoy the policy of adding and deducting research and development expenses, making it more timely to transform into the development momentum of private enterprises. This has a positive significance in stimulating the development vitality of private enterprises and helping macroeconomic stability and progress.

At the same time, in order to promote business entities to be aware of the latest tax and fee policies and enjoy the benefits of taxation, the Notice proposes to formulate and distribute a list of tax and fee preferential policies and related guidelines to support the development and growth of small and micro enterprises and individual businesses, improve the precise push mechanism of tax and fee policies, formulate and implement the "Norms for Precise Push of Tax and Fee Policies", better achieve "policy recruitment", and continuously expand the scope of application for enterprises to independently declare and enjoy.

Optimizing and innovating services to enhance the convenience of tax and payment

In terms of further facilitating tax and fee processing and improving demand response, the Notice has launched 6 articles and optimized 4 specific measures to reduce links, materials, time, and costs for taxpayers, and better protect the legitimate rights and interests of various business entities.

In order to further facilitate the handling of taxes and fees, the Notice proposes to adopt measures for accessing and reusing 11 proof materials, such as the "Enterprise Financial Accounting System", to reduce duplicate submission of information, deepen the implementation of the "Individual Business Operator Identity Certificate" and other 12 tax proof matters notification commitment system, continuously optimize pre filling services for value-added tax, corporate income tax, personal income tax and other tax types, innovate environmental protection tax declaration methods in areas with data conditions, explore intelligent pre filling, and shorten filling time.

In terms of further improving demand response, the State Administration of Taxation and various provincial tax bureaus will simultaneously establish direct contact points for private enterprises, conduct regular visits and discussions on private enterprises, systematically sort out the problems strongly reflected by small and medium-sized enterprises, study practical and effective solutions, and timely respond to the reasonable demands of taxpayers and payers. Organize the tax system to continue the service season for small and medium-sized enterprises, focusing on the needs and expectations of small and medium-sized enterprises and individual businesses, expanding innovative service measures, and promoting the better implementation and refinement of the newly introduced series of tax and fee reduction policies.

The Notice emphasizes that tax authorities in various regions should further strengthen their linkage with departments such as the Federation of Industry and Commerce, actively carry out professional training and guidance on taxation in multiple fields and levels, combining online and offline for private enterprises, and actively explore personalized services for different types of private enterprises. At the same time, collaborate with local chambers of commerce to establish private enterprise service stations or service consultants, carry out in-depth legal education, Q&A, mediation, rights protection and other work, and timely meet the service needs of enterprise tax and fee consultation.

Professor Yang Yanying from the School of Government Management at Central University of Finance and Economics believes that the State Administration of Taxation has launched a series of new measures to further facilitate tax and fee handling and improve demand response, involving tax services for various aspects and links of the private economy, timely responding to reasonable demands from business entities, continuously improving the mechanism for resolving tax and fee disputes and demand resolution, which will help enterprises focus on their operations, promote development, and continuously promote the transformation and upgrading of small and medium-sized enterprises, as well as high-quality development.

6 measures to assist business entities in cross-border development

In recent years, the State Administration of Taxation has actively responded to the needs of cross-border taxpayers, creating service products that cover all aspects of online and offline services, and provide full business support for consulting services, continuously optimizing the cross-border tax business environment.

The Notice introduces six cross-border tax service measures. Simplify the reporting of overseas investment and income information by enterprises, reduce the frequency of reporting, and further reduce the burden of enterprise declaration; Optimize the service functions of electronic tax bureaus and international trade "single window", promote the "exemption of filling in" export tax refund invoices and export customs declaration information, and further improve the convenience of private enterprises and other types of enterprises in handling export tax refunds; Relying on the "the Belt and Road" tax collection and management cooperation mechanism, deepen the "the Belt and Road" international tax cooperation, and create a good tax environment for private enterprises to better "go global".

The tax system and tax related cross-border service capabilities have become important guarantees for facilitating China's enterprises to invest abroad, and have opened up new ideas for the cross-border development of the private economy. Shen Xinguo, Director of the Tax Services Department of the State Administration of Taxation, stated that in order to further deepen cross-border services, the tax authorities will continue to promote international tax cooperation and better serve the high-quality "introduction" and high-level "going out". To improve the function of the 12366 cross-border service consultation hotline, strengthen the collection and organization of high-frequency and difficult tax related issues in cross-border operations, and expand channels for private enterprises to clarify doubts. For example, combining the characteristics of overseas investment by private enterprises, the "Overseas Tax Case Database" is launched on the official website of the State Administration of Taxation to help private enterprises prevent tax risks and improve their tax compliance ability in the process of going global.

Combining law enforcement with flexibility to help struggling enterprises overcome difficulties

The tax department has launched 5 measures to optimize law enforcement methods, continuously promote tax collection and fees in accordance with laws and regulations, strengthen regional coordination of tax enforcement, and focus on improving the accuracy of tax enforcement. On the basis of strictly regulating tax law enforcement behavior, applying the rule of law thinking, innovating administrative law enforcement methods, on the one hand, resolutely not collecting "excessive taxes and fees"; On the other hand, ensuring the implementation of tax and fee preferential policies, promoting the funds and development confidence of business entities to continue to strengthen, enabling law enforcement actions to achieve a balance of firmness, flexibility, and legal principles, and effectively safeguarding the legitimate rights and interests of taxpayers and payers.

Professor Zhu Qing from the School of Finance and Economics at Renmin University of China stated that following the launch of the fourth batch of 19 measures of the "Convenient Tax Action" on May 23 this year, the State Administration of Taxation once again announced the fifth batch of 28 measures of the "Convenient Tax Action" on August 6. The relevant policy measures are tailored to private economic entities and will play a positive role in facilitating their lawful taxation and healthy development.

It is worth mentioning that in the first half of this year, the tax department further innovatively launched the "Tax Bank Interaction" initiative between the tax and financial departments, helping small and micro enterprises nationwide obtain 4.98 million bank loans through the "Tax Bank Interaction", with a loan amount exceeding 1.45 trillion yuan, a year-on-year increase of 41%, and helping private enterprises alleviate financing difficulties. At the same time, focusing on the development needs of difficult enterprises with poor industrial and supply chains, fully leveraging the advantages of tax big data, and using the "National Taxpayer Supply Chain Query" system to expand supply and demand channels for enterprises, especially private enterprises, we helped 3670 enterprises achieve a purchase and sales revenue of 10.5 billion yuan in the first half of the year.

"Building and expanding channels for enterprise supply and demand docking, as well as further optimizing the sharing of bank and tax credit information proposed this time, helping private enterprises obtain financing support through the 'tax bank interaction' mechanism, formulating the 'Precision Push Work Norms for Tax Policies', assisting small and medium-sized enterprises in digital transformation to further reduce institutional transaction costs for small and medium-sized enterprises, breaking through the general scope of tax services, demonstrating the positive role of taxation in enhancing national governance capabilities," said Fan Yong, Dean of the School of Finance and Taxation at Central University of Finance and Economics.

The relevant person in charge of the State Administration of Taxation stated that the tax department will closely combine the implementation of theme education with the implementation of various decisions and deployments of the Party Central Committee and the State Council, always actively respond to the concerns of business entities, continuously implement tax and fee preferential policies, and launch more practical measures that benefit enterprises and the people, so that the vast number of business entities, including the private economy, can better enjoy the dividends of national policies and achieve high-quality development.