Original title: what is the situation of tax reduction of the State Council? Which enterprises should be reduced
On March 28, Premier Li Keqiang presided over the executive meeting of the State Council to determine measures to deepen the reform of value-added tax and further reduce the tax burden of market entities.
From May 1, 2018, the VAT rate of manufacturing and other industries will be reduced from 17% to 16%, and the VAT rate of transportation, construction, basic telecommunication services and agricultural products will be reduced from 11% to 10%. In addition, the annual sales Standard of small-scale industrial and commercial taxpayers was raised to 5 million yuan, and some advanced manufacturing enterprises, modern service enterprises and power grid enterprises were refunded the input tax not fully deducted in a certain period.
The above three measures will reduce the tax burden of market entities by more than 400 billion yuan in the whole year, and both domestic and foreign-funded enterprises will benefit equally. The meeting pointed out that this is to further improve the tax system, support the development of real economy such as manufacturing industry, small and micro enterprises, and continue to reduce the burden of market entities.
Reduce the burden of manufacturing industry and transportation industry
This year's report on the work of the government made it clear that the tax burden of enterprises should be further reduced. It includes improving the value-added tax system, adjusting the tax rate level according to the direction of three files and two files, focusing on reducing the tax rates of manufacturing, transportation and other industries, and improving the annual sales Standard of small-scale taxpayers.
On March 28, the executive meeting of the State Council made specific arrangements. According to the content disclosed at the meeting, there are no three levels and two levels of VAT rate involved at present.
The executive meeting of the State Council decided that from May 1, 2018, the first is to reduce the VAT rate of manufacturing and other industries from 17% to 16%, and the VAT rate of transportation, construction, basic telecommunication services and agricultural products from 11% to 10%. The policy is expected to cut taxes by 240 billion yuan for the whole year.
According to the Provisional Regulations of China on value added tax, the units and individuals that sell goods, processing, repair and replacement services, services, intangible assets, real estate and imported goods shall be the value-added tax payers.
After last year's reform, there are three remaining VAT rates in China, 17%, 11% and 6% respectively. Among them, the tax rate is 17% for the sale of goods, labor services and tangible personal property leasing services; 11% for the sale of transportation, postal services, basic telecommunications, construction, real estate leasing services and real estate; 6% for the sale of services and intangible assets.
Hu Yijian, a professor at Shanghai University of Finance and economics, told the 21st century economic reporter that the VAT rate will be reduced this time mainly for key industries supported, such as manufacturing industry, transportation industry, construction industry, basic telecommunication service industry, as well as agricultural products and other goods.
According to the report of the 19th National Congress of the Communist Party of China, to build a modern economic system, we must focus on the real economy. Including accelerating the construction of a manufacturing power, accelerating the development of advanced manufacturing industry, promoting the deep integration of Internet, big data, artificial intelligence and real economy; supporting the optimization and upgrading of traditional industries, accelerating the development of modern service industry; strengthening the construction of infrastructure networks such as water conservancy, railway, highway, water transport, etc.
A report from the Ministry of industry and information technology at the beginning of this year pointed out that at present, China is comprehensively promoting the "made in China 2025" strategy, and the international competitiveness of manufacturing enterprises is constantly increasing. But at the same time, the manufacturing enterprises in China are facing the problems of high cost, low profit and heavy tax burden, which to a certain extent inhibit the formation of the core competitiveness of enterprises. It is suggested to reduce the tax rate of value-added tax, strengthen the strength of China's manufacturing enterprises, and promote the transformation and upgrading of the real economy.
Raise the standards of small-scale taxpayers
The executive meeting of the State Council also unified the standards for small-scale VAT taxpayers. The original annual sales Standard for small-scale taxpayers of industrial enterprises and commercial enterprises was 500000 yuan and 800000 yuan respectively, which was raised to 5 million yuan this time.
It was pointed out that enterprises registered as ordinary taxpayers should be allowed to transfer to small-scale taxpayers within a certain period of time, so that more enterprises can enjoy the preferential tax calculation at a lower rate.
In China, the VAT collection rate of small-scale taxpayers is 3%, which is lower than the three standard tax rates, so small-scale taxpayers can't deduct it; any enterprise that is higher than the annual sales of small-scale taxpayers must apply the standard tax rate.
Xu Wen, a researcher at the China Academy of financial Sciences, told the 21st century economic reporter that raising the original standard of 500000 yuan and 800000 yuan would enable more small and micro enterprises to become small-scale taxpayers. At the same time, enterprises with annual sales of less than 5 million yuan would be given more options to choose to become small-scale taxpayers or ordinary taxpayers.
The executive meeting of the State Council also pointed out that enterprises that meet the requirements of advanced manufacturing industries such as equipment manufacturing and modern service industries such as research and development and power grid enterprises that have not fully deducted the input tax in a certain period of time will be refunded in a lump sum.
According to the 21st century economic news reporter, there was a precedent in the past when preferential policies were given to return the retained vat for specific supporting industries. For example, the policies issued in 2001 allow enterprises with major integrated circuit projects approved by the state to return the value-added tax retained at the end of the period due to the purchase of equipment.
This preferential policy covers a wider range, involving advanced manufacturing industry, modern service industry and power grid enterprises. Xu Wen told 21st century economic news that input tax of enterprises can not be fully deducted. In the long run, the retained tax will be gradually offset and eliminated, but it will occupy enterprise funds and give a one-time return is good for enterprises.
'in the past, because the input tax on purchasing equipment of some wind power enterprises was relatively large, it would take several years for VAT input tax to be deducted. Those enterprises with large initial investment in machinery and equipment tend to accumulate a relatively large amount of input tax ', Xu said.
What is the impact of the state council tax cut on us
What taxes have been reduced? It affects you and my life
VAT rate
The Ministry of Finance and the State Administration of Taxation issued a circular stipulating that since July 1, 2017, the VAT rate structure will be simplified and the VAT rate of 13% will be cancelled. For taxpayers selling or importing agricultural products (including grain), tap water, heating, liquefied petroleum gas and other goods, the tax rate shall be 11%.
Expand the scope of small low profit enterprises enjoying preferential corporate income tax
In June, the two departments issued a notice that from January 1, 2017 to December 31, 2019, the upper limit of the annual taxable income of small low profit enterprises was increased from 300000 yuan to 500000 yuan. For small low profit enterprises with annual taxable income less than 500000 yuan (including 500000 yuan), their income was reduced by 50% into the taxable income and the enterprise income tax was paid at the rate of 20%.
Increase the pre tax deduction ratio of R & D expenses of small and medium-sized scientific and technological enterprises
In May, the three departments issued a notice that for the R & D expenses actually incurred in the R & D activities of small and medium-sized technology-based enterprises that have not formed intangible assets and are included in the profits and losses of the current period, on the basis of actual deduction according to the provisions, during the period from January 1, 2017 to December 31, 2019, additional deduction shall be made before tax according to 75% of the actual amount; for the intangible assets formed, the cost of intangible assets shall be calculated in the above period 175% is amortized before tax.
Pilot tax policies for venture capital enterprises and angel investors
The two departments issued a notice that if a company system venture capital enterprise directly invests in a seed or start-up technology-based enterprise by way of equity investment for two years, the taxable income of the company system venture capital enterprise can be deducted at 70% of the investment amount in the year when the equity is held for two years; if the investment amount is insufficient for deduction in the year, it can be carried forward and deducted in the following tax year.
Before tax deduction of individual income tax of commercial health insurance
The three departments jointly issued a notice to make it clear that the pilot policy of individual income tax for commercial health insurance will be extended to the whole country from July 1 this year. According to the policy, it is allowed to deduct before tax the amount of taxable income of the current year (month) when individuals purchase the commercial health insurance products that meet the regulations, with the deduction limit of 2400 yuan / year (200 yuan / month).
Extend some preferential tax policies due at the end of 2016 to the end of 2019
The executive meeting of the State Council decided to extend part of the preferential tax policies due at the end of 2016 to the end of 2019, including: halving the land use tax on the bulk commodity storage facilities owned by logistics enterprises; exempting the value-added tax on the interest income of small loans of farmers from financial institutions, and expanding the scope of this preferential policy to all small loan companies operating legally and in compliance; and Key groups such as school graduates, people with employment difficulties, retired soldiers and so on shall be subject to deduction of value-added tax, urban maintenance and construction tax, education surcharges and individual (enterprise) income tax according to regulations.
What fees have been reduced? It affects you and my life
Cancel and adjust some government funds
In March, the Ministry of Finance issued a notice to cancel and adjust some government funds from April 1. The first is to cancel the special fund for additional urban public utilities and new wall materials. The second is to adjust the collection policy of the employment security fund for the disabled, and set the upper limit of the collection standard of the employment security fund for the disabled while expanding the scope of exemption.
According to the estimates of financial and tax experts, after the cancellation of the two funds, the intensity of reducing fees and burdens should exceed 40 billion yuan.
Clearing up and standardizing administrative fees
The two departments issued a notice, stipulating that from April 1, 2017, 41 administrative and institutional fees set up by the central government, including the price identification fees for non criminal cases and the border inspection and custody fees outside the port, will be cancelled or suspended, and the fee standard for trademark registration will be reduced by 50%.
Reducing unemployment insurance rate in stages
The two departments issued a notice that since January 1, 2017, provinces (districts and cities) that have decided to reduce the total rate of unemployment insurance to 1.5% can reduce the total rate to 1%, and the time limit for reducing the rate will be implemented to April 30, 2018.
A total of 22 provinces in China meet the basic conditions for reducing unemployment insurance rates. If all the fees are reduced, it is estimated that another 23.4 billion yuan will be reduced for enterprises.
Cancel domestic long-distance and roaming charges
At the end of July, three major operators, China Telecom, China Mobile and China Unicom, said they would cancel the domestic long-distance and roaming charges of mobile phones from September 1 this year.
Reduce the special line tariff of small and medium-sized enterprises
Premier Li Keqiang asked at the executive meeting of the State Council on February 22 to "further increase the speed of network and reduce fees". Three major operators responded positively. Since May, the special line tariff of small and medium-sized enterprises has been reduced by 15% - 20%.
Only the reduction of Internet special line charges is expected to make more than 10 billion yuan of profits this year.
Urban utility surcharges cancelled
According to the State Grid, the surcharge on urban public utilities, which has been levied for more than 50 years, has been cancelled recently, which can reduce the average price per kilowatt hour in China by about 1 point.
According to the national electricity sales, the electricity cost of the whole society can be saved about 35 billion yuan.
Clearing up and regulating the enterprise related charges of national trade associations and chambers of Commerce
The Ministry of Civil Affairs issued a notice, which was responsible for clearing up and standardizing the enterprise related charges of the national industry association and chamber of commerce which had been disconnected before April 30, 2017, including the fees collected by the industry association and chamber of commerce with enterprises as the main payment subject, business service charges, administrative and institutional charges, etc.
Lower limit of floating coefficient of commercial vehicle insurance rate
The CIRC will once again expand the independent pricing power of insurance companies, reduce the lower limit of the floating coefficient of the premium rate, reduce the level of the automobile insurance premium rate, and reduce the burden on consumers.
After this reduction, the minimum vehicle insurance cost can be reduced to 3.8% or even 3.4% in some areas.
Reduce administrative fees
The two departments issued a circular, stipulating that, starting from July 1, 2017, some administrative and institutional charging standards such as the fee for occupation of telecommunication network code resources, the fee for citizens' exit and entry certificates, etc. will be reduced.
It is expected to reduce the burden of enterprises and society by 2.6 billion yuan.
Charging catalogue