The Ministry of Finance pushes 11 more fiscal and tax financial policies to benefit the transportation, catering and other industries

category:Finance
 The Ministry of Finance pushes 11 more fiscal and tax financial policies to benefit the transportation, catering and other industries


Zhang Yiqun, vice chairman of the China budget performance Committee, told the Securities Daily that in the face of the epidemic, the Ministry of finance has quickly adopted a comprehensive and effective response to the epidemic prevention and control, encouraged the production of key materials, medical security protection for front-line personnel, boosted the confidence of the industry affected by the epidemic, guaranteed the win-win situation of residents necessities, increased bank loan discount and reduced enterprise financing A series of financial and tax support policies, such as cost reduction, tax reduction, subsidy increase, and comprehensive coverage, have greatly reduced the tax burden of the supply enterprises of epidemic prevention materials and the transportation, catering, tourism and other industries seriously affected by the epidemic, rapidly enhanced the ability of epidemic prevention and control, guaranteed the safety of peoples lives, restored the normal production safety of enterprises, and mobilized the enthusiasm of front-line personnel for epidemic prevention and control They all played a crucial role.

For example, the production enterprises of key guarantee materials for epidemic prevention and control have been given the policy of applying for a full refund of the incremental VAT allowance on a monthly basis. Ma long, partner in charge of Chinas tax policy service of PricewaterhouseCoopers, told the Securities Daily that this will play a direct and immediate role in alleviating the cash flow difficulties of production enterprises, and can help production enterprises to strengthen the production of protection and guarantee materials and help to resist the epidemic.

VAT shall be exempted for the income obtained from the taxpayers provision of key support materials and services for prevention and control of transportation epidemic, public transportation services, and life services, as well as the provision of necessary living materials and express delivery services for residents. Malone said that enterprises such as public transport services take the responsibility of transporting anti epidemic materials and ensuring peoples daily necessities on the front line of anti epidemic, and they need to bear additional costs and expenses during the epidemic, and the VAT exemption policy can also ease their operating costs and cash flow difficulties.

In terms of enterprise income tax, for the relevant equipment newly purchased by the material production enterprises for epidemic prevention and control to expand production capacity, it is allowed to be included in the current cost and deducted before the enterprise income tax. The maximum carry over period of losses of enterprises in difficult industries affected by the epidemic in 2020 is extended from 5 years to 8 years. Malone believes that this measure can reduce the enterprise income tax burden in 2020 and subsequent years.

Malone said that in response to the donation behavior of the taxpayer, he listened to the voice of the taxpayer in three aspects: first, enterprises and individuals are allowed to deduct in full when calculating the taxable income through donations and donations from public welfare social organizations or the peoples governments at or above the county level and their departments and other state organs, which is not limited by the deduction limit of the enterprise income tax law and the individual income tax law on donation expenditure Second, the materials donated by enterprises and individuals directly to the hospitals undertaking epidemic prevention and control tasks can also be fully deducted; third, these donated materials are exempt from value-added tax, consumption tax and additional tax. These policies support the whole peoples epidemic prevention and fighting, and provide more powerful tax support for enterprises and individuals, especially for the direct donation of hospitals undertaking epidemic prevention and control.

In addition, it also provides the individual tax exemption policy for the temporary work subsidies and bonuses obtained by the medical personnel and epidemic prevention workers participating in the epidemic prevention and control work, as well as the non cash materials such as drugs, medical supplies and protective articles issued by the unit to individuals for the prevention of pneumonia caused by the new coronavirus. Malone said that since the outbreak, medical staff and epidemic prevention workers have been fighting day and night in the forefront of the fight against epidemic, and the individual income tax exemption policy is a support and affirmation for their work. At the same time, the policy also supports enterprises that help employees to prevent and fight the epidemic.

With the continuous development of the situation of epidemic prevention and control, follow-up policies such as optimizing the budget expenditure structure, maintaining a reasonable deficit scale, issuing special bonds, and improving government reserve procurement are expected to be issued to further support economic development. Zhang Yiqun said.

Malone suggested that, in addition to national policies, in the face of the epidemic, local financial and tax departments should provide local financial and tax support to industries (such as transportation, catering, accommodation, tourism) that are particularly affected by the epidemic and other enterprises that fail to return to work in a timely and sufficient manner. For example, the real estate tax and urban land use tax should be reduced and remitted difficultly, and the payment should be delayed On the basis of enterprise social security, it is considered to continue to reduce social security rates in stages, and provide subsidies or assistance funds for small and medium-sized enterprises, key private enterprises or enterprises seriously affected by the epidemic. Yu Weiping said that in the next step, we will continue to implement various tax reduction and fee reduction policies, further consolidate and expand the effectiveness of tax reduction and fee reduction, pay close attention to the tax burden changes of various industries in accordance with the requirements of the Three Guarantees, especially in view of the impact of the new coronavirus infection of pneumonia, study and solve the outstanding problems reflected by enterprises in a timely manner, resolutely reduce the tax reduction in place, and reduce the tax reduction We will continue to play the policy effect of reducing taxes and fees. Source: responsible editor of Securities Daily: Yang qian_nf4425

Malone suggested that, in addition to national policies, in the face of the epidemic, local financial and tax departments should provide local financial and tax support to industries (such as transportation, catering, accommodation, tourism) that are particularly affected by the epidemic and other enterprises that fail to return to work in a timely and sufficient manner. For example, the real estate tax and urban land use tax should be reduced and remitted difficultly, and the payment should be delayed On the basis of enterprise social security, it is considered to continue to reduce social security rates in stages, and provide subsidies or assistance funds for small and medium-sized enterprises, key private enterprises or enterprises seriously affected by the epidemic.

Yu Weiping said that in the next step, we will continue to implement various tax reduction and fee reduction policies, further consolidate and expand the effectiveness of tax reduction and fee reduction, pay close attention to the tax burden changes of various industries in accordance with the requirements of the Three Guarantees, especially in view of the impact of the new coronavirus infection of pneumonia, study and solve the outstanding problems reflected by enterprises in a timely manner, resolutely reduce the tax reduction in place, and reduce the tax reduction We will continue to play the policy effect of reducing taxes and fees.