Structural tax reduction and fee reduction dividends are accelerating their release
2024-10-04
The latest statistics from the State Administration of Taxation show that from January to August this year, the main policies supporting scientific and technological innovation and the development of the manufacturing industry have reduced taxes, fees, and refunds by over 1.8 trillion yuan. Since the beginning of this year, the tax department has continued to deepen the "policy search", and has carried out targeted policy recommendations for 360 million households (people) at specific time points, with 540 million pieces of information on various tax and fee preferential policies. The structural tax reduction and fee reduction dividends are accelerating, providing strong support for promoting high-quality economic development and cultivating new quality productive forces. According to the final settlement and payment data of corporate income tax for the year 2023, which ended in the first half of this year, a total of 629000 enterprises nationwide enjoyed additional deductions for research and development expenses, totaling 3.45 trillion yuan. In recent years, the country has successively introduced a series of tax preferential policies to support technological innovation, such as the additional deduction of R&D expenses for enterprise income tax and the preferential treatment of income tax for high-tech enterprises. Among them, the policy of additional deduction of R&D expenses has a wide range of preferential scope, strong intensity, and high value, which has effectively promoted the role of enterprises as the main body of innovation, "said Huang Yun, spokesperson and director of the General Office of the State Administration of Taxation. How to understand the deduction of R&D expenses? Huang Yun gave an example, for example, if a company carries out research and development activities and incurs eligible research and development expenses of 1 million yuan, and is subject to the policy of 100% additional deduction, then the company can deduct 2 million yuan of research and development costs before calculating corporate income tax. Simply put, spending 1 yuan on expenses can deduct 2 yuan in costs. In this way, the taxable income of the enterprise will be greatly reduced, and the taxable amount will also decrease accordingly. If enterprises continue to invest the saved money in research and development, it will form a virtuous cycle that promotes innovation. In recent years, China has continuously increased the deduction ratio for research and development expenses and has repeatedly advanced the timing of policy benefits. Starting from 2017, the R&D expense deduction ratio has been increased from 50% to 75% by industry and batch, and then from 75% to 100%. The R&D expense deduction ratio for key areas such as integrated circuits and industrial mother machines has also been increased to 120%. At the same time, from initially only being able to enjoy additional deductions during the annual settlement and payment of corporate income tax, to also being able to enjoy them during the prepayment declaration in October each year, and then adding the prepayment declaration period in July as a policy enjoyment point, allowing enterprises to receive policy dividends as early as possible. According to statistics, in 2023, 405000 high-tech enterprises will enjoy additional deductions, amounting to 2.83 trillion yuan, a year-on-year increase of 15.1%. The average additional deduction amount per household is 2.5 times that of non high-tech enterprises. In 2023, private enterprises will enjoy an additional deduction amount of 2.59 trillion yuan, a year-on-year increase of 12.5%, accounting for 75% of the total additional deduction amount for all enterprises. In order to promote the full enjoyment of tax and fee incentives, in March of this year, the Ministry of Finance, the Ministry of Science and Technology, the General Administration of Customs, and the State Administration of Taxation jointly issued the "Guidelines for Major Tax and Fee Preferential Policies to Support Technological Innovation in China". This guideline classifies policies according to the stages of technological innovation activities, including venture capital, research and experimental development, achievement transformation, key industry development, and the entire industry chain. It details the beneficiaries, application conditions, and application methods for each preferential policy. Tax preferential policies and various tax measures are important driving forces for promoting technological innovation and accelerating the formation of new quality productivity. At present, China's tax preferential policies have fully penetrated the entire process of scientific and technological innovation, including R&D investment, R&D implementation, and R&D results transformation, providing coherent support for reducing R&D costs in various links and stimulating enterprise innovation vitality Li Xuhong, Vice President of Beijing National Institute of Accounting, stated that a series of tax and fee incentives to support technological innovation focus on enterprises as micro entities, providing full lifecycle support for enterprise development, transformation, and upgrading. According to the data of value-added tax invoices supporting the manufacturing industry, from January to August, the sales revenue of China's manufacturing industry accounted for 29.7% of the total sales revenue, an increase of 0.8 percentage points compared to the same period last year; The sales revenue of China's high-end equipment manufacturing industry and high-tech manufacturing industry accounted for 16.5% and 15.6% of the manufacturing industry's sales revenue, respectively, an increase of 0.5 and 0.6 percentage points compared to the same period last year. The pace of intelligent and green development is accelerating. Data shows that from January to August, the amount of digital technology procurement in China's manufacturing industry increased by 10.7% year-on-year, driving a year-on-year increase of 11.5% in sales revenue for the smart device manufacturing industry; The procurement of energy-saving and environmental protection services by industrial enterprises above designated size increased by 19.1% year-on-year, reflecting the increased efforts of enterprises in energy conservation and pollution control. Behind the accelerated transformation and upgrading of the manufacturing industry, strong support from tax and fee preferential policies is indispensable. In terms of reducing the tax and fee burden on the manufacturing industry, from 2018 to 2023, the cumulative increase in tax reduction and fee reduction, as well as tax refund and fee deferral, in the national manufacturing industry exceeded 4 trillion yuan, accounting for more than 30% of all tax and fee incentives, benefiting the most among various industries. At the same time, a series of tax and fee support policies that promote technological innovation and energy conservation and environmental protection are driving manufacturing enterprises to transform and upgrade towards high-end, intelligent and green directions. Taking the deduction of R&D expenses as an example, in 2023, 333000 manufacturing enterprises will enjoy an additional deduction of 2.03 trillion yuan for R&D expenses. The number of households enjoying the policy and the proportion of additional deductions will both exceed half, reaching 52.9% and 58.8% respectively. In April of this year, the "Guidelines for Major Tax and Fee Preferential Policies to Support the Development of Manufacturing Industry in China" compiled by the Ministry of Finance and the State Administration of Taxation were released. The "Guidelines" include a total of 31 special, inclusive, and regional policies, each of which details the beneficiaries, content, time, conditions, application time, materials, methods, policy basis, and policy cases, promoting the precise and efficient direct delivery of policy benefits to business entities. The manufacturing industry has a long chain and wide coverage, and the precise and effective implementation of a series of tax and fee preferential policies can not only effectively reduce the burden and increase the strength of enterprises, but also further inject development momentum into the entire upstream and downstream industrial chain. The relevant tax and fee preferential policies focus on supporting the development of the manufacturing industry towards high-end, intelligent, and green development. Through the adjustment and guidance of tax and fee leverage, they effectively promote the acceleration of the transformation pace of the manufacturing industry Wang Zecai, a researcher at the Chinese Academy of Fiscal Sciences, said. Manufacturing is the foundation of a country and the basis of a strong nation. Tax and fee preferential policies that support the development of the manufacturing industry can help alleviate operational pressure, enhance innovation momentum, and activate development potential. Next, we will put support for the development of the manufacturing industry in a more prominent position, promote policy implementation to be more awesome, enterprises to enjoy more, and better help the high-quality development of the manufacturing industry. " Dai Shiyou, Director of the Policy and Regulation Department of the State Administration of Taxation, said. Since the beginning of this year, the tax department has continued to deepen reforms in the tax field, launching the "Spring Breeze Action for Convenient Taxation" for the 11th consecutive year, integrating a series of measures to benefit the people and enterprises. By simplifying the processing procedures, promoting business integration and data sharing, it comprehensively enhances the sense of gain for taxpayers and payers. This year, the unified and standardized new electronic tax bureau has been launched nationwide, reducing tax processing time by 20% compared to the past and making tax payment more convenient. At the same time, the implementation of "data collection+intelligent pre filling" and "tax linkage+element supplementary reporting" declaration methods enables most taxpayers to complete the declaration with just one click confirmation or correction of a small amount of information. By steadily promoting the comprehensive digitization of electronic invoices, the convenience of taxpayers using invoices has been further improved. Create multiple comprehensive tax payment scenarios in the new electronic tax bureau, integrating matters involving multiple types of taxes and fees that require multiple processing into one transaction, effectively meeting the needs and expectations of taxpayers and payers Shen Xinguo, Director of the Tax Service Department of the State Administration of Taxation, introduced that the State Administration of Taxation has deepened cooperation with the General Administration of Customs and other departments to improve the service efficiency of enterprise export tax refund and other tax payment matters through timely sharing of data information. At the same time, we actively promote the "one-time processing" of enterprise information changes and the "one-stop processing" of enterprise deregistration, helping to efficiently carry out the "one thing" verification of legal and compliance information for enterprise listing and the "one thing" verification of enterprise bankruptcy information. Local tax departments focus on the needs of taxpayers and payers, continuously improving service efficiency. The tax department in Zhuhai has fully implemented online processing of 233 tax related payment matters, including 97% of tax matters and 99% of tax declaration matters. Since the beginning of this year, the "non-contact" tax rate in the city has remained stable at over 98.8%, and "no more than one visit" or even "no need to visit once" has become a reality. The tax department in Zhuhai has also created a "online platform+online download" cloud meeting living room, which integrates multi-party consultation, joint handling, and dispute resolution functions for complex tax and fee matters, providing taxpayers and payers with a comprehensive and one-stop service experience. In order to assist in the construction of a unified national market, the tax department has revised and improved the "Operational Norms for Tax Collection and Management", further promoting the standardization and normalization of tax collection and management nationwide. At the same time, a series of measures will be launched to further facilitate cross regional migration of enterprises, including optimizing pre notification, speeding up in process handling, and improving post event services. At present, eligible taxpayers can complete the procedures for cross regional relocation as soon as possible on the same day. The tax department continues to expand cross regional tax and fee services. In March of this year, a pilot program of "remote virtual windows" was opened in tax service halls across the country. So far, 164000 cross regional tax and fee services have been remotely processed for taxpayers and payers. The continuous optimization of tax credit evaluation methods helps to improve the credit of newly established taxpayers. As of the end of August, 26000 newly established taxpayers have achieved tax credit upgrades. The tax department, together with financial regulatory authorities and commercial banks, standardized and optimized the "bank tax interaction". In the first half of the year, small and micro enterprises across the country obtained bank loans of 1.56 trillion yuan through the "bank tax interaction", a year-on-year increase of 7.6%, helping small and micro enterprises better obtain credit support. Next, we will establish and improve a normalized communication and exchange mechanism for 'face-to-face tax enterprise', promote comprehensive collection and efficient resolution of tax and fee related demands, and continuously improve the efficiency of tax and fee services Shen Xinguo stated. (New Society)
Edit：Chen Jie Responsible editor：Li Ling
Source：Economic Daily
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