Real money to help companies bail out development

2022-04-27 0 By

Source: Economic DailyHelp enterprises to bail out real gold and silver The current economic operation in China is facing a new downward pressure, difficult challenges, to implement the central economic work conference spirit and national annual plan, plan as a whole the epidemic prevention and control and the economic and social development, strengthen the cyclical adjustment, steady hand growth on a more prominent position, to complete tasks for economic and social development target.To this end, macro policies should be steady and effective, consistent and effective.Financial institutions must bear in mind the overall situation and firmly support the development of the real economy.From now on, we will launch a series of reports to explain how fiscal, tax and financial policies can firmly and effectively support the real economy and stabilize the macroeconomic market.Tax and fee cuts are key measures to help enterprises.In this year’s Report on the Work of the Government, we will implement a new combination of tax and fee support policies, combine phased measures with institutional arrangements, and use both tax cuts and rebates.Through the implementation of a series of policies, it is estimated that about 2.5 trillion yuan of tax rebates will be reduced this year, of which about 1.5 trillion yuan will be reserved for tax rebates.We will significantly increase the amount of VAT set aside as rebates, and the “real money” measures will boost market confidence.A massive 1.5 trillion yuan of tax rebate funds was set aside to direct them directly to enterprises. Our policy arrangements exceeded our expectations. This is the biggest highlight of this year’s tax and fee cuts, inspiring many businesses.Since 2019, China has gradually established a VAT increment retention tax rebate system, which has benefited many enterprises.Fujian Baihong Poly Fiber Technology Industrial Co., LTD., the largest polyester fiber and polyester film manufacturer in South China, will enjoy an incremental tax rebate of more than 250 million yuan in 2021.”In recent years, both central and local governments have vigorously implemented measures to cut taxes and fees. Our enterprises have benefited from these policies, especially the support provided by tax rebates for advanced manufacturing, which has greatly boosted their confidence and motivation for transformation and upgrading.”Bai Hong company quality control department workshop director Su Qiong said.What is the value added tax retained against the rebate?VAT is the largest tax in China. It implements a chain deduction mechanism, and the amount of tax payable is the balance of the current output tax deducted from the input tax.When the input tax is greater than the output tax, the uncredited input tax is retained as a tax credit.Experts analyze that the retained tax credit is mainly caused by the inconsistency between input tax and output tax of taxpayers in time, such as the centralized purchase of raw materials and inventory, but not all sales;Investment period no income, etc.In addition, when multiple tax rates coexist, the applicable tax rate for sales is lower than the applicable tax rate for input.”The retention of the tax rebate is actually to return the VAT at the end of the period to the taxpayer.”Beijing national accounting institute the fiscal and taxation policy and application research institute xu-hong li said that this year through early return not deduction, directly to the market main body to provide about 1.5 trillion yuan of cash flow, increase the enterprise cash flow, especially when the release of the enterprises in the equipment purchase to deduction, help to boost the confidence of the enterprises to expand reproduction,Enterprises are also encouraged to invest more money in production activities such as technology research and development.The Report on the Work of the Government makes it clear that a large-scale tax rebate will be implemented ahead of schedule this year.Priority will be given to small and micro enterprises. All the remaining tax credits for small and micro enterprises will be refunded in one lump sum before the end of June, and the incremental tax credits will be refunded in full.We will focus on supporting the manufacturing sector, and comprehensively address the issue of tax rebates in manufacturing, scientific research and technical services, ecological protection, electric power and gas, and transportation.”We will significantly reduce the burden on enterprises and also help standardize and optimize the tax system. This is a key move to cut taxes and fees this year.”Feng Qiaobin, deputy head of the macroeconomic research department at the Development Research Center of The State Council, said.As an important part of the policy of tax reduction and fee reduction, the speed of tax rebate is one of the influencing factors of the policy dividend release effect.”Not long ago, our company applied for more than 20 million yuan to be retained as tax rebate, and the tax department provided a ‘quick refund’ service, which can be refunded to the account within half a day, providing strong cash flow support for the company to deal with the suspension of cruise business affected by the epidemic.This year, the government will comprehensively solve the problem of setting aside tax rebates in key industries such as transportation, which gives us more confidence for the company’s future development.”Xiamen international cruise home port Group Co. LTD. Tax clerk Hu Shuting said.Small, medium and micro enterprises are related to employment and people’s livelihood, and at the same time, they are facing great difficulties. In 2021, preferential tax policies to support the development of small and micro enterprises will increase the tax reduction of 295.1 billion yuan, accounting for 29.3% of the new tax reduction nationwide. This year’s tax reduction and fee reduction policies will continue to increase the support for them.The Report on the Work of the Government makes it clear that we will continue to implement the policy of reducing taxes and fees to support manufacturing, small and micro businesses, and individual businesses, and increase the scope of such reductions and fees to cover more people.Small-scale taxpayers will be exempted from VAT for a period of time;For small and micro enterprises with annual taxable income of 1 million to 3 million yuan, the enterprise income tax will be halved.Feng Qiaobin analyzed that the tax and fee cuts in 2022 will highlight the precision and targeted policies. “Targeted policy support will be given to micro, small and medium-sized enterprises, individual businesses, manufacturing, technology enterprises and other key and weak links in the operation of the national economy and industrial and supply chains.This is mainly because micro, small and medium-sized enterprises and individual businesses are still the most affected by the economic downturn as the impact of the epidemic has not completely passed.”Since the beginning of this year, the Ministry of Finance and the State Administration of Taxation have issued documents on many occasions to clarify policies on tax and fee reductions for micro, small and medium-sized enterprises.For example, the policy of suspending the payment of certain taxes and fees for micro, small and medium-sized manufacturing enterprises was extended for another six months, bringing tangible dividends to the enterprises.The implementation of this policy in the fourth quarter of 2021 was very effective, with a total of 216.2 billion yuan, equivalent to the government providing an “interest-free loan” to micro, small and medium-sized enterprises, alleviating their financial pressure.This year, large-scale tax rebates will be implemented in advance for retained tax credits, and priority will be given to small and micro businesses. This is undoubtedly a “gift package” for small and micro businesses.”Our enterprise equipment, R & D investment is large, capital turnover is an important factor restricting our development, large-scale retention tax rebate policy is really too timely, effectively relieve our financial pressure, increase cash flow.”Zhang Shanshan, finance director of Zhejiang Lilian Lighting Technology Co., LTD., said that according to estimates, enterprises can apply for a one-time tax rebate of more than 1.5 million yuan before the end of June.”Micro, small and medium-sized enterprises in precision drip irrigation are one of the priorities of tax and fee reduction policies this year.”Li xuhong said that a series of policy measures can effectively relieve the cash flow pressure of micro, small and medium-sized enterprises, provide strong financial support for their production and business activities, further stimulate the development of enterprises, improve the job market, and promote the smooth and orderly operation of the macro economy.The unprecedented scale of tax cuts and tax rebates to ensure the implementation of policies will objectively put some pressure on local finances.According to the Report on the Work of the Government, the central government will increase financial support for local governments and direct subsidies directly to cities and counties. Local governments and relevant departments should establish and improve working mechanisms, strengthen the allocation of funds, and ensure the implementation of the key measure of tax rebates and reductions.According to the budget, transfer payments from the central government to local governments will increase by about 1.5 trillion yuan to nearly 9.8 trillion yuan, an increase of 18% and the largest increase in years.”In the context of pressure on local finances, to effectively implement more tax and fee cuts, it is necessary to increase transfer payments from the central government to local governments to make up for the reduction in local tax revenue.This year, transfer payments from the central government to local governments have increased significantly, which shows that tax and fee cuts are actively linked and coordinated with other fiscal policies to help rescue enterprises and boost the confidence of market entities.”Xiamen University school of Economics and finance professor Pan Yue said.Xing-yun liu said, director of financial department in shandong province this year implementation policies prevailing worldwide tax protection is stronger, the central government specially arranged a special transfer payment funds, the key to the affected by tax cuts JiangFei large regions, security grass-roots financial running smoothly, prison “miho” the bottom line, “at the grass-roots level to do a good job this year’s tax cuts JiangFei more confident and confidence”.It is a huge and complex systematic project to ensure the implementation of new combined tax and fee support policies this year, involving many policy items and taxes and fees.The reporter learned from the State Administration of Taxation that the taxation department is now working hard to promote the implementation of the work.”Tax department will be left to carry out the fine new combined tax support policy as a major task, from the state administration of taxation and tax bureau to set up special tax support policy to carry out the work team, continuously optimize the working mechanism, breaks down work tasks, to mark the table operation, ensure that dividend policy promptly sent to the hands of market main body.”State Administration of Taxation related person said.(Reporter Zeng Jinhua) Lead editor: Yang Jing