This year's government work report puts forward that the annual tax rebate and tax reduction is expected to be about 2.5 trillion yuan, of which about 1.5 trillion yuan is reserved for tax rebate, and all tax rebate funds go directly to enterprises. What is the retention tax rebate? What impact will this policy have? The Ministry of Finance issued a policy answer on the 8th to give a detailed introduction to the public. It is reported that the tax rebate is to return the amount of tax that has not been deducted at the end of the value-added tax period to the taxpayer. The chain deduction mechanism is implemented for value-added tax, and the tax payable is the balance of the taxpayer's current output tax deducted from the input tax. Among them, the output tax refers to the value-added tax calculated according to the sales volume and the applicable tax rate; Input tax refers to the value-added tax borne by the purchase of raw materials. When the input tax is greater than the output tax, the input tax not deducted will form a tax allowance. How is the tax allowance formed? The Ministry of Finance said that it was mainly caused by the inconsistency in the time of taxpayers' input tax and output tax. For example, the centralized procurement of raw materials and inventories has not yet been fully sold; There is no income during the investment period. In addition, when multiple tax rates coexist, the applicable tax rate for sales is lower than the applicable tax rate for input, which will also form a tax allowance. Internationally, there are generally two ways to deal with the tax retention and credit: allowing the taxpayer to carry forward the deduction in the next period or apply for refund in the current period. At the same time, countries or regions that are allowed to refund will also set relatively strict tax refund conditions accordingly. For example, the amount of tax retained must reach a certain amount; You can only apply for tax refund once a year or a period of time; Only specific industries are allowed to apply for tax rebates, etc. The Ministry of Finance said that since 2019, China has gradually established a value-added tax increment rebate system. This year, we will improve the value-added tax rebate system, optimize the collection, payment and refund process, implement large-scale tax rebates for the amount of tax retained and credited, and return in advance the input tax that taxpayers can continue to deduct in the future. By returning the tax that has not been deducted in advance, we can directly provide the market participants with cash flow of about 1.5 trillion yuan, increase the enterprise cash flow and alleviate the pressure of capital return, which will not only help to enhance the confidence of enterprise development and stimulate the vitality of market participants, but also promote consumption and investment, support the high-quality development of the real economy, and promote industrial transformation and upgrading and structural optimization. (Xinhua News Agency)