It is of great significance to enterprises, especially those with operational difficulties. It can not only reduce the production and operation costs of small and micro enterprises, but also enable small and micro enterprises to invest more funds in technology upgrading and expanded reproduction.
2. Tax reduction for enterprises can achieve a win-win situation for the development of enterprises and the enhancement of government financial resources.
In the context of economic downturn, although tax reduction will bring great pressure to finance, it will inevitably increase government tax revenue in the long run. Facts have proved that tax reduction is a policy of releasing water to raise fish.
3. The tax reduction policy helps to optimize the internal industrial structure of enterprises, improve the independent innovation ability of enterprises, enhance the core competitiveness of enterprises, and gradually promote the transformation and upgrading of enterprises.
Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.
Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.
Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.
Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.
No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.
Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.
Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.