On March 28, the Premier of the State Council, Li Keqiang, presided over the executive meeting of the State Council to determine measures to deepen the reform of the value-added tax and further reduce the tax burden on market participants.
The meeting pointed out that in the past five years, cumulative tax reductions have increased by 2.1 trillion yuan through the implementation of the camp reform. In accordance with the arrangements of the Party Central Committee and the State Council, in order to further improve the tax system and support the development of the real economy such as the manufacturing industry and small and micro enterprises, and continue to reduce the burden on market players, the meeting decided that it would start on May 1, 2018.
The first is to reduce the value-added tax rate of the manufacturing industry and other industries from 17% to 16%, and to reduce the value-added tax rate for transportation, construction, basic telecommunications services, and agricultural products from 11% to 10%, which is expected to decrease throughout the year. Taxes are 240 billion yuan.
The second is the unified standard for small-scale VAT payers. To increase the annual sales standard for small-scale taxpayers of industrial and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow companies registered as ordinary taxpayers to register as small-scale taxpayers within a certain period of time. , allowing more companies to enjoy tax reductions at lower rates.
The third is the one-off refund of input tax that has not been deducted for a certain period of time for advanced manufacturing industries such as equipment manufacturing, R&D and other modern service industries, and grid companies.
The implementation of the above three measures will reduce the tax burden on market entities by more than 400 billion yuan in the whole year. Both domestic and foreign-funded enterprises will benefit equally.
