On May 26, the Shenzhen Municipal People's Government issued "Several Measures to Further Promote Stable Growth and Improve Quality of Shenzhen's Industrial Economy", proposing 30 measures from eight aspects. Among them, the "Measures" propose to implement phased reductions and exemptions for value-added tax and income tax. The "Measures" require the implementation of large-scale VAT refunds. Comprehensively implement the policy of large-scale refund of excess VAT credits, and increase the refund ratio of incremental excess credits from 60% to 100% for eligible small and micro enterprises and eligible enterprises in manufacturing and other industries, starting from April 2022. Apply to the competent tax authority for a refund of the incremental excess tax credit starting from the monthly tax declaration period. Qualified micro-enterprises and small enterprises can apply to the competent tax authorities for a one-time refund of the existing tax credits starting from the tax declaration period in April and May 2022 respectively. Qualified medium-sized enterprises and large enterprises in manufacturing and other industries can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in May and June 2022 respectively. Implement phased value-added tax and income tax reductions and exemptions. From April 1, 2022 to December 31, 2022, the taxable sales income of small-scale VAT taxpayers is applicable to the 3% levy rate, and is exempt from VAT; the prepaid VAT items are applicable to the 3% prepayment rate. Prepayment of VAT is suspended. From January 1, 2022 to December 31, 2024, for small and low-profit enterprises whose annual taxable income exceeds 1 million yuan but does not exceed 3 million yuan, a reduced rate of 25% will be included in the taxable income, and a rate of 20 % corporate income tax.

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