Theoretically speaking, if the enterprise income tax rate is reduced, the enterprise savings rate will increase, the liquidity will increase and the investment rate will also increase. In fact, reducing corporate income tax is to improve the production capacity of hundreds of millions of economic entities in China through liquidity relief. If the economic scale increases, the tax rate decreases but the tax base expands, the total tax revenue may increase instead of falling.
Reducing the enterprise income tax rate can promote enterprises to destock and deleverage, while reducing leverage and triangular debt can increase the liquidity of enterprises, promote the liquidity of the secondary market of money and capital, and make the commodity market more prosperous.
The efficiency of China's economy has improved significantly, and the economic system will also change from the original investment-driven mode to the demand-driven and innovation-driven mode, thus promoting the increase of per capita income and boosting the national economy to maintain a high growth rate.
Extended data:
Important measures:
On August 30th, 20 18, People's Republic of China (PRC) Li Keqiang, Premier of the State Council of the People's Republic of China presided over the the State Council executive meeting and decided to push forward new measures to support the development of the real economy. Reducing taxes and fees is an important measure to implement a proactive fiscal policy and maintain a stable and positive macro economy.
1. Property tax and urban land use tax shall be reduced or exempted for enterprises that have stopped production or business due to policies such as de-capacity and restructuring, and tax reduction and exemption shall be given for investment businesses related to social security funds and basic endowment insurance funds. For interest income of agricultural loans of Postal Savings Bank with a large amount of agricultural loans, the simple taxation method shall be allowed to pay VAT at the rate of 3%.
2. In order to encourage the increase of loans for small and micro enterprises, from September 0, 2065438 to the end of 2020, the upper limit of credit line for qualified small and micro enterprises and individual industrial and commercial households will be exempted from VAT, and the previously determined 5 million yuan will be further raised to100000 yuan.
3. In order to promote a higher level of opening to the outside world and encourage and attract foreign capital to participate in domestic economic development, corporate income tax and value-added tax are temporarily exempted from the bond interest income obtained by overseas institutions investing in the domestic bond market, and the policy period is tentatively set at three years, and the export tax rebate rate of some products is increased.
Baidu encyclopedia-tax reduction