What are the 7 tax incentives proposed by the State Council for start-up companies?

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 What are the 7 tax incentives proposed by the State Council for start-up companies?


The executive meeting of the State Council, held in April 25th, decided to introduce 7 tax reduction measures to support entrepreneurship and small and micro enterprise development. This is the second time since the two sessions this year that the government has launched a policy of reducing burdens on enterprises. In early March this year, the government work report pointed out that in 2018, enterprises and individuals would be reduced by about 800000000000 yuan. In March 28th, at the second standing meeting of the State Council, the measures to deepen the VAT reform were formally introduced, including the policy of reducing the two grade tax rate of the enterprise value added tax by 1%. The tax burden of the market will be reduced by more than 400 billion yuan in the whole year, and both domestic and foreign enterprises will benefit equally. The Executive Council of the State Council has introduced 7 tax reduction measures, and the annual tax reduction is expected to be about 60000000000 yuan. The policy also made clear that the government work report greatly expanded the scope of small and micro enterprises to enjoy the preferential policy of reducing the income tax on income tax and greatly improving the upper limit of the tax deduction before the new purchase of instruments and equipment. Zhu An, a partner in charge of tax and business consulting in North China of DDT accounting firm, said that of the 7 policies introduced, 5 related to enterprise income tax. The most important role is to encourage the development of small and micro enterprises and encourage small and micro enterprises to do R & D investment. The following is a detailed explanation of some policies related to venture enterprises. Policy 1 The maximum unit value of R & D instruments and equipment will be increased from 1 million yuan to 5 million yuan. How strong is the discount? The accounting system treats instruments and equipment as fixed assets, and the general accounting process refers to depreciation of fixed assets. A one-time tax deduction is actually a deduction from the annual depreciation to the cost before tax, which is equivalent to a reduction in the amount of tax payable. In this way, depreciation is accelerated and enterprises are quicker to recover their costs and detract tax revenue later. For example: for example, when buying a R & D equipment, depreciation for 10 years is 100 thousand yuan a year. In the original policy, as long as the value of equipment exceeds 1 million yuan, 100 thousand of the depreciation of the year can only be taken into the companys cost of the year, and it is deducted from the amount of tax before paying the enterprise income tax in the same year. As long as the new policy is implemented, as long as the value of the equipment is not more than 5 million yuan, the 10 year depreciation 1 million yuan can be put in one lump sum, which is equivalent to reducing the taxable amount of the enterprise income tax by 1 million yuan in the first year. Who is the benefit enterprise? Zhu An believes that the discount does not refer specifically to certain industries or enterprises of a certain stage and scale. For example, a financial institution, if purchased equipment for data research and development, also accords with preferential policies. The role of the new policy is to encourage companies to actively and boldly purchase R & D equipment, because more valuable equipment is more helpful to R & D results, it is to encourage companies to spend money on R & D equipment. Zhu An said. Policy two The upper limit of annual taxable income of small and micro enterprises will be increased from 500 thousand yuan to 1 million yuan. What is the income tax for small and micro enterprises? There are two kinds of income tax rates in our country, one is the income tax rate of 25% of the general enterprise, that is, 25% of the total profit is paid to the national finance as tax, but the preferential tax rate, including the applicable tax rate of non resident enterprises 20%, the applicable tax rate of small small profit enterprises in conformity with the conditions, and the applicable tax of high and new technology enterprises to be supported by the state. The rate is 15%. What is the amount of taxable income? According to the provisions of the tax law, it refers to the balance of all taxable income obtained by the taxpayer in a certain period of time minus the various expenditures that are allowed to be reduced according to law during the period of the tax payment. Which companies will benefit from the policy? Under the original policy, as long as the small micro enterprises whose annual tax income is below 500 thousand, they can enjoy a reduction of half, or 10%, on the basis of the 20% income tax rate. The new policy will increase the amount of tax income to 1 million in that year, that is, more small and micro enterprises will enjoy the tax rate of 10% enterprises. In the view of Eucalyptus, the enterprise income tax is a relatively large tax, a large burden on small and micro enterprises, a new policy, intended to reduce the burden of small and micro enterprises, encourage entrepreneurship, and will increase at least hundreds of thousands of small and micro enterprises to enjoy the income tax rate of 10% enterprises. The two measures will be implemented from January 1, 2018 to December 31, 2020. Policy three What is R & D plus deductions? The addition of deductions is a tax preferential measure on the basis of the actual amount in accordance with the tax law and then added to a certain proportion as the amount of deductions for calculating the amount of the taxable income. For example, it is assumed that the tax law provides a 50% plus deductible policy for R & D costs. An enterprises income is 1000 yuan and the cost is 700 yuan. The R & D cost of the new product is 100 yuan, which can be deducted at the amount of 150 yuan (100 x 150%) before tax, that is to deduct for 750 yuan (50 yuan not to be taxed) when the tax is actually paid. In this way, corporate income tax will be reduced. What kind of business is it for? Zhu An believes that the policy does not have a clear limit on the size of the industry or business, but a larger or more sophisticated enterprise will choose to entrust overseas research and development because the cost of R & D abroad is higher. Policy implementation is intended to encourage domestic enterprises to learn foreign R & D capability and technology faster. Zhu said that this very open policy is more open than many foreign related policies. Policy four The age of loss making for high-tech enterprises and small and medium-sized enterprises will be extended from 5 years to 10 years. What is the transfer period of the loss? The transfer of a loss is a tax discount for a taxpayer who has paid income tax in a tax year and is allowed to make up for the profit of other tax years. Example: a company has a long profit cycle, if the loss is 5 years, the first year loss 3 million yuan, second year loss 2 million yuan, third year loss 1 million yuan, fourth year profit and loss balance, fifth years to realize 10 million yuan profit, then fifth years can pay the profit of 10 million yuan when paying enterprise income tax. Minus the total loss of 6 million yuan in the preceding 4 years, we only need to pay 4 million yuan. After the implementation of the new policy, the carrying rate of losses is 10 years, that is, the losses in the first 9 years can be offset in tenth years. Which enterprises are mainly for the industry? Zhu said that the policy is mainly aimed at developing enterprises with relatively long profit cycles, such as biotechnology, semiconductor chip R & D and other enterprises. This is the first time in the income tax policy to extend the number of years of loss, allowing high-tech enterprises to be more patient in R & D investment. The two measures have been implemented since January 1, 2018. Policy seven The preferential policies of venture capital enterprises and angel investment individuals who are currently pilot in the 8 comprehensive innovation and reform test areas and Suzhou industrial parks are extended to the whole country. The preferential policies of the initial stage of scientific and technological enterprises to deduct the amount of taxable income according to the amount of investment 70% are promoted to the whole country. The preferential policies of corporate income tax and personal income tax have been implemented since January 1st and July 1st respectively. How to understand the amount of the amount of investment to deduct the taxable income amount 70%? For example, for example, an angel investment institution invested 10 million yuan in a start-up technology enterprise, and at the same time he achieved a profit of 8 million yuan in other projects. When the income tax is paid, the taxable amount is 8 million yuan minus 7 million yuan (10 million *70%), or 1 million yuan. Which people and enterprises do the new policy affect? All over the country, the funds will be invested in venture capital enterprises and angel investment individuals in the seed stage and start-ups. Zhu An said that the policy has greater incentives for the enterprise income tax or personal income tax, and it is also to encourage more investors to invest in the seed period and the initial stage of scientific and technological enterprises. Entrepreneur said Source: Beijing News Editor: Ji Xue Ying _NN6784