Feng Qiaobin: New tax cuts and fee reductions are good for market players


2022-01-14: [Article Link]  Von Fung Bin: The new tax deductions are good marketers All sectors in each region should vigorously implement the new requirements for tax cuts and keep the economy within reasonable boundaries. The policies already in place for tax cuts can be sustained and improved; the policy for value added tax credits to refunds is strengthened; the policy for research and development costs plus deductions is improved; the personal income tax burden for low- and middle-income groups is reduced as appropriate; and there is a strong commitment to correcting misalignment, among other things. The Central Economic Workshop noted the need to continue to implement new tax abatement fees for market agents, particularly small and medium-sized enterprises, and individual business owners to reduce their vulnerability and resume their development. The recent symposium on tax reduction fees pointed to the need to implement a new and more robust combination of tax reduction fees in response to the needs of market players and to ensure a smooth economy and macroeconomic stability during the quarter. This seminar highlighted the need to continue the implementation of tax abatement measures in support of micro-enterprises and individual entrepreneurs, which expired at the end of 2021. In previous years, a number of tax incentives have been introduced to support micro-enterprises, which expired at the end of 2021, and the continuation of these policies in order to achieve the goal of “six steady” six guarantees in 2022 has helped to stimulate the dynamism of the market and to withstand the new downward pressures of the economy. The policy of increasing value added tax (VAT) credits to refunds has been strengthened, and the value added tax (VAT) credits are essentially the expense of the enterprise. Greater reform of value-added tax credits against refunds can significantly reduce the burden on businesses, as well as help to regulate and optimize the tax system. This year, it will be possible to adapt to the needs of the situation by increasing the amount of credit credits, so that they can be withdrawn, while reducing the policy threshold appropriately and allowing more market players to enjoy the policy. In order to support the development of the manufacturing sector and to encourage the economy to “get out of business.” In 2021, we increased the share of R & D costs for manufacturing enterprises from 75% to 100%, while allowing them to enjoy them earlier, with good results. This policy could be expanded this year to include all types of science- and technology-based enterprises in order to accelerate the promotion of technological progress, stimulate investment in the cost of R & D in society at large and promote innovation and upgrading of science and technology in manufacturing enterprises. An appropriate reduction of the personal income tax burden on low- and middle-income groups has been achieved through the issuance of three policies at the State Council’s previous general meeting: first, the non-inclusion of a one-time annual bonus from the current month’s salary, and the extension until the end of 2023 of a policy of separate monthly taxes. Second, the tax exemption policy is extended until the end of 2023 for annual income of no more than 120,000 Yuan, and no more than 400 Yuan is subject to taxes or annual remittances. Third, the tax exemption policy is extended until the end of 2022 for listed company equity incentives. In recent years, the State has continued to regulate the payment of fees, significantly reducing the cost of social transactions and optimizing the business environment, but in some cases there has been a proliferation of individual sites and a variety of renovations. It is important to see that the effects of tax abatement policies can be seriously offset by the imposition of disbursal charges, increasing the burden on businesses, and affecting their confidence and expectations. To address both the symptoms and the root causes, there is a need for continued disbursal of fees. Coercive fee-fixing projects, raising collection standards, and broadening the scope of collection are strictly prohibited, and they are identified and dealt with together. The regulation of the fees of chambers of commerce of trade associations needs to be further strengthened and market-based methods used to promote the rationalization of operating charges.


Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.






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Feng Qiaobin: New tax cuts and fee reductions are good for market players


2022-01-14: [Article Link]  Von Fung Bin: The new tax deductions are good marketers All sectors in each region should vigorously implement the new requirements for tax cuts and keep the economy within reasonable boundaries. The policies already in place for tax cuts can be sustained and improved; the policy for value added tax credits to refunds is strengthened; the policy for research and development costs plus deductions is improved; the personal income tax burden for low- and middle-income groups is reduced as appropriate; and there is a strong commitment to correcting misalignment, among other things. The Central Economic Workshop noted the need to continue to implement new tax abatement fees for market agents, particularly small and medium-sized enterprises, and individual business owners to reduce their vulnerability and resume their development. The recent symposium on tax reduction fees pointed to the need to implement a new and more robust combination of tax reduction fees in response to the needs of market players and to ensure a smooth economy and macroeconomic stability during the quarter. This seminar highlighted the need to continue the implementation of tax abatement measures in support of micro-enterprises and individual entrepreneurs, which expired at the end of 2021. In previous years, a number of tax incentives have been introduced to support micro-enterprises, which expired at the end of 2021, and the continuation of these policies in order to achieve the goal of “six steady” six guarantees in 2022 has helped to stimulate the dynamism of the market and to withstand the new downward pressures of the economy. The policy of increasing value added tax (VAT) credits to refunds has been strengthened, and the value added tax (VAT) credits are essentially the expense of the enterprise. Greater reform of value-added tax credits against refunds can significantly reduce the burden on businesses, as well as help to regulate and optimize the tax system. This year, it will be possible to adapt to the needs of the situation by increasing the amount of credit credits, so that they can be withdrawn, while reducing the policy threshold appropriately and allowing more market players to enjoy the policy. In order to support the development of the manufacturing sector and to encourage the economy to “get out of business.” In 2021, we increased the share of R & D costs for manufacturing enterprises from 75% to 100%, while allowing them to enjoy them earlier, with good results. This policy could be expanded this year to include all types of science- and technology-based enterprises in order to accelerate the promotion of technological progress, stimulate investment in the cost of R & D in society at large and promote innovation and upgrading of science and technology in manufacturing enterprises. An appropriate reduction of the personal income tax burden on low- and middle-income groups has been achieved through the issuance of three policies at the State Council’s previous general meeting: first, the non-inclusion of a one-time annual bonus from the current month’s salary, and the extension until the end of 2023 of a policy of separate monthly taxes. Second, the tax exemption policy is extended until the end of 2023 for annual income of no more than 120,000 Yuan, and no more than 400 Yuan is subject to taxes or annual remittances. Third, the tax exemption policy is extended until the end of 2022 for listed company equity incentives. In recent years, the State has continued to regulate the payment of fees, significantly reducing the cost of social transactions and optimizing the business environment, but in some cases there has been a proliferation of individual sites and a variety of renovations. It is important to see that the effects of tax abatement policies can be seriously offset by the imposition of disbursal charges, increasing the burden on businesses, and affecting their confidence and expectations. To address both the symptoms and the root causes, there is a need for continued disbursal of fees. Coercive fee-fixing projects, raising collection standards, and broadening the scope of collection are strictly prohibited, and they are identified and dealt with together. The regulation of the fees of chambers of commerce of trade associations needs to be further strengthened and market-based methods used to promote the rationalization of operating charges.

Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.

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