Updated: 2022-04-06 SAT

One-time full refund of the stock of retained tax credits for small and micro businesses by the end of June, and full refund of incremental retained tax credits; phased exemption from value-added tax for small-scale taxpayers......The government work report submitted for consideration on the 5th clearly implements a new combined tax support policy. It is expected that the annual tax refunds and cuts will be about 2.5 trillion yuan, of which about 1.5 trillion yuan will be retained as tax refund, and all the refunded tax will go directly to businesses.

This group of policies, upholding the combination of phased measures and institutional arrangements, as well as tax cuts and tax refunds. On one hand, they continue to implement the policy of supporting the manufacturing industry, small and micro businesses and individual business owners to reduce taxes and fees, increase the range of reductions and exemptions, as well as expand the scope of application. On the other hand, comprehensive consideration was given to providing cash flow support for businesses, promoting consumption and investment, and vigorously improving the value-added tax credit refund system, with a large-scale refund of the tax credits retained this year.

Specifically, the report highlights a series of initiatives: further 50% reduction in corporate income tax for small and micro businesses annual taxable income of 1 million yuan to 3 million yuan part; focus on supporting the manufacturing industry, and comprehensively resolve the issue of tax refunds for manufacturing, scientific research and technical services, ecological and environmental protection, electricity and gas, transportation and other industries with tax credits; the central government will increase financial support for local financial resources, subsidies directly to cities and counties……

"The new policy focuses on important areas and key links such as manufacturing, small and micro businesses, science and technology innovation, with greater precision and will release multiple policy dividends." Liu Xingyun, a deputy to the National People's Congress and director of the Finance Department of Shandong Province, said.

Liu Shangxi, a member of the National Committee of the Chinese People's Political Consultative Conference and president of the Chinese Academy of Fiscal Sciences, said that the further strengthening of the policy of tax refunds with tax credits helps to relieve the financial pressure of the market players, increase the cash flow of businesses, and effectively reduce the burden and add vitality to them.

From "tax and fee reduction" to "tax and fee reduction + tax and fee mitigation", in order to support the development of market entities, China has continued to implement tax and fee reduction policies in recent years, with an additional tax and fee reduction of more than 1 trillion yuan in 2021.

The relevant person in charge of the State Administration of Taxation said that the taxation department will continue to optimize the tax payment service to ensure that the reduction is in place, the exemption is in place, the mitigation is in place and the refund is in place, so that the market subjects and the people can have a real sense of gain.