Tax and fee policy combination to support enterprises in relieving difficulties
The latest data shows that in the first seven months, the country added 1.05 trillion yuan in tax cuts and fee reductions, as well as tax refunds and deferred fees. Since the beginning of this year, China has focused on supporting the strengthening and optimization of the real economy, promoting income growth and consumption expansion, promoting high-level technological self-reliance and self-improvement, and supporting the development of strategic emerging industries. A combination of tax and fee policies has been implemented to provide practical support for enterprises to alleviate difficulties and develop.
It is understood that in supporting the real economy, based on optimization and improvement, the expiration tax and fee preferential policies involving small and micro enterprises and individual businesses will be uniformly extended until the end of 2027. In promoting technological innovation, we will increase the pre tax deduction ratio of research and development expenses for relevant industry enterprises, and implement this policy as a long-term institutional arrangement.
In terms of supporting and promoting the development of strategic emerging industries and capital markets, we will continue and optimize the policy of reducing and exempting the purchase tax on new energy vehicles, introduce advanced manufacturing value-added tax additional deduction preferential policies, continue the Shanghai Hong Kong Stock Connect, Shenzhen Hong Kong Stock Connect and mutual recognition of funds, support the opening of the commodity futures market to the outside world, innovate enterprise depositary receipts, and implement a halving of stamp duty on securities transactions.
We have continued to implement multiple tax and fee preferential policies in supporting small and micro enterprises. Reduce and waive value-added tax and income tax benefits for small-scale taxpayers and small and micro enterprises, expand the scope of individual industrial and commercial households who enjoy the halving of personal income tax, uniformly reduce the "six taxes and two fees" for small and micro enterprises and individual industrial and commercial households, and increase the tax deduction limit for key groups such as college graduates engaged in individual business.
"According to 2022 data, approximately 70% of small and micro enterprises and individual businesses do not need to pay taxes. On this basis, we will further increase tax and fee support, while adding other financial policies to support small and medium-sized enterprises." Vice Minister of Finance Wang Dongwei said that there are about 73 million small and micro enterprises and individual businesses among the existing tax related business entities in China, and the relevant tax and fee policies are highly inclusive, which can be enjoyed by eligible small and micro enterprises and individual businesses.
The State Council has decided to increase the special additional deduction standards for the care of infants and young children under the age of 3, their education, and the support of the elderly starting from January 1, 2023. "After the increase of the three special additional deduction standards, the tax burden of taxpayers will be further reduced, especially for the middle-income group, with a greater reduction in tax," said Wang Dongwei.
Good policies still need to be implemented well. "Starting from September, for taxpayers who have already reported these three special additional deductions this year, I do not need to do anything. The new system will directly adjust the original standard to the new standard. At the same time, the information system will also calculate according to the new standard, allowing taxpayers to enjoy preferential policies." said Luo Tianshu, Chief Accountant of the State Administration of Taxation.
The tax department has specially formulated a precise "one policy, one plan" to carry out a full process, progressive, and differentiated push work to the legal representative, financial manager, and tax personnel. Since August this year, the tax department has accurately pushed over 275 million households in batches, making every effort to achieve "policy recruitment".
According to Chen Zhijiang, the person in charge of the Price Supervision, Inspection and Anti Unfair Competition Bureau of the State Administration for Market Regulation, the State Administration for Market Regulation has made rectifying illegal fees charged by enterprises a key focus of this year's work, continuously optimizing, improving and implementing tax and fee reduction policies, and helping enterprises reduce their burdens and increase efficiency. As of now, more than 1600 cases of illegal fees related to enterprises have been filed and investigated, directly reducing the burden on enterprises by nearly 500 million yuan. After the filing and investigation, all the money has been refunded to the enterprises.
