VAT launches new major tax preferential policies

1. Expand the scope of preferential corporate income tax policies for small and micro enterprises:

From 2017 to 2019 , increasing the annual taxable income limit of small and low-profit enterprises from the original 300,000 yuan to 500,000 yuan. Further promote the friendly development of small and micro enterprises. ?

2. The value-added tax rate structure will be further simplified:

Starting from July 1, 2017, the value-added tax rate will be adjusted from the original four levels to three levels: 6, 11, and 17. The tax rate of 13% will be cancelled, and industries with original tax rates of 13%, such as agricultural products and natural gas, will be reduced to 11%. At the same time, the original deduction for purchases by deep-processing enterprises of agricultural products will remain unchanged to avoid increasing the tax burden due to reduced input deductions. ?

3. Further optimization of R&D expenses for small and medium-sized technology enterprises:

From 2017 to 2019, the proportion of R&D expenses for small and medium-sized technology enterprises that will be deducted from corporate income tax will be increased , increased from 50 to 75. ?

Fourth, pilot projects are carried out in eight comprehensive innovation reform pilot areas in Beijing-Tianjin-Hebei, Shanghai, Guangdong, Anhui, Sichuan, Wuhan, Xi'an, and Shenyang and the Suzhou Industrial Park. Starting from January 1 this year, venture capital companies that invest in seed-stage and start-up stage technology companies can enjoy the preferential policy of deducting 70% of the investment amount from their taxable income; investments made within 2 years before the policy takes effect can also enjoy the preferential policy The aforementioned offers. ?

5. Starting from July 1 this year, individuals’ expenditures on eligible commercial health insurance products will be allowed to be deducted before tax up to an annual limit of 2,400 yuan. ?

6. Extend some preferential tax policies that expire at the end of 2016 to the end of 2019, including halving the urban land use tax for land used for bulk commodity storage facilities owned by logistics companies, etc.

Extended information:

Since the VAT implements a tax deduction system based on special VAT invoices, taxpayers have higher accounting requirements and are required to be able to accurately calculate sales. Item tax, input tax and tax payable.

However, the actual situation is that many taxpayers cannot meet this requirement. Therefore, the "Interim Regulations of the People's Republic of China on Value-Added Tax" will classify taxpayers according to their business scale and whether their accounting is sound. Divided into general taxpayers and small-scale taxpayers.

General taxpayers:

(1) Taxpayers who produce goods or provide taxable services, and taxpayers who mainly produce goods or provide taxable services (i.e. taxpayers who produce goods or provide taxable services) (or the annual sales of taxable services account for more than 50% of the taxable sales) and the taxpayer also engages in the wholesale or retail of goods, and the annual taxable sales exceed 500,000;

(2 ) is engaged in the wholesale or retail business of goods, with annual taxable sales exceeding 800,000 yuan.

Small-scale taxpayers:

(1) Taxpayers who are engaged in the production of goods or the provision of taxable services, and taxpayers who are mainly engaged in the production of goods or the provision of taxable services (i.e. taxpayers For taxpayers whose annual sales of goods are produced or services are provided accounts for more than 50% of the annual taxable sales) and who also engage in the wholesale or retail of goods, their annual value-added taxable sales (referred to as taxable sales) are not less than 500,000 yuan. The following (including this number).

(2) In addition to the above provisions, taxpayers whose annual taxable sales are less than 800,000 yuan (inclusive).

Special provisions:

(1) General taxpayers who sell used items that belong to the "Provisional Regulations of the People's Republic of China on Value-Added Tax" shall not be deducted and shall not be deducted. Fixed assets for which input tax has not been deducted will be levied value-added tax at a rate of 3 minus 2 according to the simplified method.

(2) Small-scale taxpayers who sell their used fixed assets shall be levied value-added tax at a reduced rate of 2%.

(3) General taxpayers who sell the following self-produced goods may choose to calculate and pay value-added tax according to the 3 collection rate according to the simplified method:

1. Small-scale enterprises at and below the county level Electricity produced by hydroelectric generating units.

Small hydropower units refer to small hydropower units with an installed capacity of less than 50,000 kilowatts (including 50,000 kilowatts) built by various investment entities.

2. Sand, soil and stone used in construction and production of building materials.

3. Bricks, tiles and lime (excluding clay solid bricks and tiles) continuously produced from self-quarried sand, soil, stone or other minerals.

4. Biological products made from microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues.

5. Tap water.

6. Commercial concrete (limited to cement concrete produced with cement as raw material).

Reference materials: Li Keqiang presided over the State Council executive meeting: launching further tax reduction measures-Xinhuanet