Home >

From July 1St, A New Round Of Lowering Fees Will Be Felt On The Ground, And Enterprises Will Feel Better In Reducing Taxes And Lowering Fees.

2019/7/2 10:13:00 288

Tax Cut And Fee Reduction

Since the beginning of this year, a number of measures to reduce taxes and fees have been introduced. In July 1st, China's new round of 300 billion yuan fee reduction "red envelope" hit again.

The executive meeting of the State Council, held in April 3rd, determined measures to reduce government fees and operating service charges this year, and further lighten the burden on enterprises and the masses. After implementation, it is estimated that the whole year will reduce the burden of enterprises and the masses by more than 300 billion yuan. These measures have been implemented since July 1st. In the view of the industry, the new 300 billion yuan scale reduction measure is an important part of the 2 trillion tax reduction and reduction policy this year. It is a further measure for the state to reduce taxes and reduce fees after reducing the VAT rate and social security rate.

Experts interviewed by the business community believe that the implementation of a series of tax reduction and reduction measures this year will result in a substantial decrease in the operating costs of enterprises, thereby substantially increasing the profits of enterprises, and at the same time helping to enhance the confidence of entrepreneurs in investment and development. Tax reduction is good for enterprise development, but tax reform is necessary to solve the fundamental tax burden of enterprises.

300 billion the cost reduction measures will soon come down.

Since July 1st, this new round of fee reduction measures has come down to the ground, including the registration of the real estate ownership standard of garage and parking lot from 550 yuan to 80 yuan, and the registration fee of trademark renewal has been reduced from 1000 yuan to 500 yuan, reducing the standard of collecting fees for entry-exit certificates such as private ordinary passports. Reduce mobile network traffic and SME broadband tariffs for about 180 billion yuan a year, reduce the average electricity price of the general industry and commerce, lower the price of railway freight, reduce port charges, and abolish the certification fees of citizenship information.

In response, Liu Xingguo, director of the China Federation of enterprise research and director of the enterprise research office, told the China business newspaper that the implementation of the new round of cost reduction measures will bring further drop in operating costs to enterprises in many ways, which can reduce expenditure in administrative expenses and reduce the cost of logistics and electricity consumption. It can not only reduce the cost of enterprise informatization, but also reduce the expenditure of enterprises on trademark protection.

In fact, in the view of the industry, since the beginning of April, structural tax reduction measures have been implemented intensively, and tax reduction has entered an accelerated landing stage. Since the beginning of this year, China has launched a series of structural tax reduction measures such as special tax deduction, small and micro preferential tax reduction, value added tax rate reduction, administrative fee reduction and so on. Among them, the tax reduction policy "heavy duty" value-added tax reduction and social security reduction fees, respectively, began in April 1st and May 1st.

On the value-added tax reduction, the Ministry of finance, the State Administration of Taxation and the General Administration of Customs jointly issued a notice in March, announcing that the unprecedented reduction of the value-added tax rate this year will officially start in April 1st, and announced a series of supporting measures to deepen the value-added tax reform. According to the notice, the general tax payers who have VAT taxable sales activities or imported goods are subject to a 16% tax rate. The tax rate is adjusted to 13%. The original 10% tax rate is adjusted to 9%. In April, the general plan of reducing social insurance rates issued by the general office of the State Council clearly pointed out that since May 1, 2019, the proportion of the basic old-age insurance unit payment for urban workers has been reduced, and the proportion of units paying more than 16% can be reduced to 16%. At the same time, we should continue to reduce unemployment insurance and work-related injury insurance rates. Since May 1, 2019, the total unemployment insurance rate in 1% provinces has been extended, and the unemployment insurance premium rate has been extended for a period of time to April 30, 2020. Since May 1, 2019, the period of reducing the insurance premium rate for industrial injury has been extended to April 30, 2020.

Experts interviewed by business circles believe that the burden of China's entity enterprises will be effectively reduced with the landing of tax reduction and fee reduction policies.

The effect of VAT tax reduction was clearly reflected in May. At the same time, with the corresponding reduction in the proportion of social security payments, enterprises will also have a drop in the cost of labor. Liu Xingguo told reporters.

This can be seen from the relevant data: in the 1-5 months of this year, the total domestic value-added tax was 30319 billion yuan, an increase of 6.8% over the same period last year, an increase of 12.2% over the same period last year, and a slower growth rate of 5.4 percentage points than that in 1-4 months. In May this year, the actual added value tax was 394 billion 200 million yuan, lower than the 492 billion 500 million yuan in May last year. This shows that the effect of VAT tax reduction is beginning to show.

Similarly, the latest figures of the State Administration of Taxation on the reduction of social security fees also show that in the 1-5 month of this year, the national total tax reduction and reduction fee was 893 billion yuan, including a new tax reduction of 816 billion 800 million yuan, an increase of 76 billion 200 million yuan in social insurance premiums, and a series of tax reduction and reduction policies, such as deepening the value-added tax reform and the personal tax reform, and so on, so as to effectively promote the high quality development of the economy.

Dongxing securities (11.880, -0.10, -0.83%) analyst Tang Liming also pointed out that the current five risk one gold payment for the small and micro enterprises is a heavy burden, and the increase in the cost of personnel also makes enterprises control the number of recruitment workers. Therefore, reducing the burden of corporate social security payment is conducive to improving the human capital enthusiasm of enterprises.

Enterprises feel that reducing taxes and reducing fees are good and obvious.

The enterprises surveyed have expressed obvious benefits to the tax reduction and fee reduction measures introduced this year.

The head of a software company in Ningbo also confirmed that "we feel this year on tax preferences." Normally, the technical trade contracts and technical service contracts signed by us are tax-free and do not need to pay VAT. If we can not sign such a contract, we will refund the contract with the contract of sale software. That is to say, pay 16% tax, retreat 13%, the actual value-added tax is 3%. "

This year, however, tax cuts such as VAT rates and tax cuts have benefited businesses such as commerce, chemicals, mining, and automobiles. Zhao Wei, chief macroeconomic analyst at Changjiang Securities (7.810, 0.21, 2.76%), pointed out in the latest research report that according to the current different industries' input and output tax rates, using the earnings data of more than 3500 listed companies, assuming that commodity prices remain unchanged, we can roughly estimate the tax reduction effect of the VAT rate adjustment on the industry. Among them, trade, chemical industry, mining, automobile and other industries tax reduction scale or higher.

"This year's tax cuts are particularly strong. Many of the small and medium-sized enterprises that I have contacted show that tax cuts have benefited them significantly. This year, tax cuts have benefited more businesses than ever before, and indeed lightened the burden on enterprises," said Wenzhou. Zhou Dewen, President of the Zhejiang Federation of private investment enterprises, has been called the spokesman for small and medium-sized enterprises by the media. He has been calling for tax cuts for small and medium enterprises. He also accepted the interview with the China business newspaper.

However, in Zhou Dewen's view, the tax burden of small and medium-sized enterprises in China is somewhat high. According to his example, in Zhejiang, a toy with a price of 75 yuan is required to pay 3.63 yuan national tax, 0.44 yuan education surtax, 0.02 yuan water conservancy fund and 2.77 yuan social security fund, the total tax and fee is 6.86 yuan, while the cost and processing fee are only 25 yuan. It is also necessary to reduce taxes for small and medium-sized enterprises.

Meanwhile, the head of a toy enterprise in Dongguan, Guangdong, told reporters that their enterprises benefited significantly from the reduction of social security fees this year, reducing the cost of their enterprise expenditures. "Especially this year, our business orders reduced the burden on enterprises compared with the same period last year."

For the first half of this year issued a series of tax reduction measures, Liu Xingguo told reporters, "since the beginning of this year, a series of tax reduction measures to implement the implementation of the cost of operation will cause a significant decline in business costs, thereby substantially increasing corporate profits."

He also pointed out that, with the improvement of the profitability of enterprises, on the one hand, entrepreneurs' confidence in investment and development will be correspondingly enhanced, and the growth rate of investment will stabilize and rebound. On the other hand, the ability of R & D investment will also be strengthened, and enterprises will have more potential for sustainable development.

Zhou Dewen also believes that tax cuts will provide an opportunity for SMEs to transform. Because in his view, tax cuts can alleviate the financial difficulties of SMEs and reduce the financial costs of SMEs. At the same time, tax reduction can increase revenue expectations, promote effective investment in private capital, effectively promote technological upgrading and transformation of SMEs, and more effectively invest in competition and maintain a balanced market situation. Moreover, tax cuts can also promote employment, expand consumption and increase domestic demand.

What tax cuts will be needed in the future? Zhou Dewen believes that "tax cuts are good for the development of enterprises, but the fundamental tax burden of enterprises needs tax reform and a more reasonable tax ratio."

  • Related reading

Zhejiang Speeds Up The Construction Of Intelligent Factories In Textile And Other Industries

policies and regulations
|
2019/7/1 19:29:00
39

The State Administration Of Taxation Issued A New Guide To "Double Creation" Tax Incentives

policies and regulations
|
2019/6/27 8:57:00
132

13 Textile And Apparel National Standards Promulgated In January 1, 2020.

policies and regulations
|
2019/6/11 9:45:00
76

What Is The Skill Training Of Textile Industry? A Three Year Plan To Understand The National Vocational Skills Upgrading Action Plan

policies and regulations
|
2019/6/11 9:45:00
70

The Ministry Of Commerce Issued A Research Report On The Benefits Of The US In Sino US Economic And Trade Cooperation.

policies and regulations
|
2019/6/10 10:15:00
65
Read the next article

What To Wear For The Interview? How To Wear A Graduation Practice?

Interview is the most direct way for employers to know each job seeker. Dressing, speaking and so on will affect the interviewer's judgement on you. Wear