The new corporate income tax law has been officially implemented. Which industries will benefit listed companies? Cong Ming, a director-level inspector of the Policy and Regulations Department of the State Administration of Taxation, said in Shenzhen on the 19th that after the implementation of the new corporate income tax law, the financial and insurance industry will be the biggest beneficiary due to the obvious burden reduction effect and strong wage deductions.
Cong Ming said at the 2008 Investment Strategy Report of Great Wall Securities held on the 19th that the new corporate income tax law, which was officially implemented in 2008, reduced the statutory tax rate from the original 33% to 25%. The income tax collected by domestic-funded enterprises will be reduced by 134 billion yuan a year, which will have a burden-reducing effect on industries that originally had heavy tax burdens.
According to statistics, the tax burden on finance and insurance in 2006 was 39.8%, followed by tobacco at 32.1%, real estate at 25.1%, coal at 24.8%, and construction at 24.1%. Information transmission, computer services and software accounted for 23.5%, wholesale and retail accounted for 23.3%, and petroleum processing accounted for 23.1%. The tax burden of these industries is relatively high.
Cong Ming said that the new corporate income tax law stipulates that corporate salary cash income can be deducted before tax. It should be said that the biggest beneficiary of this policy is also the financial and insurance industry, because this industry is characterized by relatively high employee expenses. According to calculations by relevant market experts, the salary expenses of bank employees generally account for half of the total expenses of the bank, and the wages are deducted according to the actual situation. Once the policy is implemented, the deduction amount for the financial and insurance industry will increase significantly.
Cong Ming said that, overall, the financial and insurance industries are the biggest beneficiaries of the new corporate income tax law. In addition, industries such as agriculture, forestry, animal husbandry, fishery, energy conservation and environmental protection, software and integrated circuits, due to the strong support from the state, the relevant tax rates in the new corporate income tax law are also maintained at a low level, and they will also be beneficiaries of this policy. Related Listed companies may perform relatively well in 2008.
On December 11, 2006, the five-year protection period of China’s accession to the WTO ended, and China’s financial industry was fully opened to the outside world. Previous research reports have shown that there are currently about 3 million financial talents in China, and less than 100,000 people meet this requirement. Six types of financial talents, including financial analysts, fund managers, securities brokers, actuaries, and investment management talents, are in high demand.
After 20 years of development, the insurance industry already has a large number of employees, but high-level talents are relatively limited. Foreign insurance companies are rushing to Jinan, and the positions they provide are concentrated in the following areas: senior customer service personnel, marketing business managers, marketing trainers, financial managers, human resources managers, etc.