The State Administration of Taxation has successively formulated and issued 12 preferential tax policies jointly with the Ministry of finance, the General Administration of customs, etc.; jointly with the Ministry of human resources and social security, the Ministry of finance, the state health insurance bureau, etc., formulated and issued policies to reduce and remit the social security premiums of enterprises and the basic medical insurance premiums of employees at different stages; and is now introducing preferential policies to reduce and remit the value-added taxes of individual industrial and commercial households and small-scale taxpayers jointly with relevant departments. On February 27, Ren Rongfa, deputy director of the State Administration of Taxation, said at a press conference held by the State Administration of taxation.
Based on the scale of output value of industries greatly affected by the epidemic, the proportion of employees and tax contribution, it is estimated that these measures will reduce taxes and fees for enterprises by about 700 billion yuan. Zhang Yiqun, vice chairman of China budget performance Committee, told Securities Daily.
The first batch of 12 policies focused on epidemic prevention and control, with the aim of sending the policies to the front line of anti epidemic in the first time. We should not only directly support the medical treatment, but also support the production and transportation of relevant support materials, and also mobilize all forces to actively support and support epidemic prevention and control.
The second batch of policies mainly focus on reducing the burden of social security fees of enterprises, with the purpose of reducing the labor cost of enterprises and enhancing their confidence in returning to work. The payment of enterprises endowment insurance, unemployment insurance and work-related injury insurance shall be reduced and the basic medical insurance premium shall be reduced in stages, and the payment part of basic medical insurance units for employees shall be reduced by half under the guidance of provinces and regions as a whole.
The third three policies mainly focus on small and micro enterprises and individual businesses, with the purpose of enhancing their ability to resist risks and helping them overcome difficulties. There are three policies in this batch: first, from March 1 to the end of May, the vat of small-scale taxpayers in Hubei Province will be exempted, and the collection rate in other areas will be reduced from 3% to 1%; second, for individual industrial and commercial households participating in the endowment insurance, unemployment insurance and work-related injury insurance of enterprise employees by unit, they will enjoy the policy of relief by reference to small and medium-sized micro enterprises; third, they will encourage all regions to support the lessors to be individual through the reduction of urban land use tax and other ways Real estate rent is reduced for business owners.
Zhang Yiqun said that small and micro enterprises and individual businesses are important forces for stable economic growth and employment in China. Affected by the epidemic situation, this part of the population has poor anti risk ability. Therefore, the introduction of a series of tax preferential policies for rescue is of great significance to stabilize employment and protect peoples livelihood, which also supports the overall smooth operation of the economy in the first half of the year.
Guo Yiming, chief investment adviser of Jufeng investment consulting, told the Securities Daily that the epidemic had a great impact on small and micro enterprises and individual businesses, while the introduction of a package of preferential tax policies by the state undoubtedly gave enterprises a boost, which was conducive to helping enterprises reduce costs, enhance their ability to resist risks and overcome difficulties. Guo Yiming predicted that there would be targeted tax reduction and fee reduction policies in the next step, such as reducing corporate profit income tax.
The head of the State Administration of Taxation said that he would further focus on the implementation of tax reduction and fee reduction policies and measures. We will continue to implement policies such as reducing VAT rates and withholding tax rebates, and support the development of the real economy and the growth of new driving forces. We will continue to implement policies such as adding and deducting R & D expenses, and support scientific and technological innovation.