{"id":5338,"date":"2022-03-21T06:56:13","date_gmt":"2022-03-21T06:56:13","guid":{"rendered":"https:\/\/www.elitestage.cn\/?p=5338"},"modified":"2023-03-29T11:15:49","modified_gmt":"2023-03-29T11:15:49","slug":"china-will-provide-2-5-trillion-for-tax-rebate-and-reduction","status":"publish","type":"post","link":"https:\/\/www.elitestage.cn\/de\/china-will-provide-2-5-trillion-for-tax-rebate-and-reduction\/","title":{"rendered":"China Will Provide 2.5 Trillion for Tax Rebate and Reduction"},"content":{"rendered":"

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The fifth session of the 13th National Committee of CPPCC<\/strong>\u00a0had it closing ceremony at the Great Hall on March 10th. But have you known about the\u00a0new changes<\/strong>\u00a0mentioned in the government work report?<\/section>\n<\/section>\n<\/section>\n<\/section>\n
This year, for\u00a0small and medium-sized enterprises, the best news is the tax rebate policy. According to the report,\u00a0the government will\u00a0provide 2.5 trillion for tax rebate and reduction in 2022,<\/strong>\u00a0including\u00a0VAT exemption,\u00a0preferential corporate income tax,\u00a0rebate of overpaid VAT, and\u00a0special additional deductions for individual income tax.\"\"<\/p>\n
In general, the government will make more effort to further carry out the policies of\u00a0cutting taxes and fees<\/strong>\u00a0in 2022, including\u00a0phasing out\u00a0VAT for small-scale taxpayers,\u00a0halving corporate income tax for eligible small-and-micro enterprises, and\u00a0granting rebates for tax credits on a large scale. Benefits are coming!<\/section>\n
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No VAT payments for small taxpayers<\/strong><\/section>\n<\/section>\n
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We will extend tax and fee reduction policies that support manufacturing, micro and small enterprises and self-employed individuals, and expand the scale and scope of those policies.\u00a0A temporary exemption on VAT payments will be granted to small taxpayers.Compared with the current tax preference for small taxpayers:\u25c6\u00a0The VAT levy rate for small taxpayers is reduced\u00a0from 3% to 1%<\/strong>.\u25c6 Monthly sales of 150,000 yuan or quarterly sales of 450,000 yuan below can enjoy the exemption of VAT.<\/p>\n

The preference of 3% to 1% for small taxpayers will be maintained, while the VAT exemption is expected to be increased to 200,000 yuan on monthly sales or 600,000 yuan on quarterly sales.<\/p>\n<\/section>\n

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More reduction on corporate income tax\u00a0<\/strong>for micro-and-small enterprises<\/strong><\/section>\n<\/section>\n
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Corporate income tax on annual taxable income of between\u00a0one million to three million<\/strong>\u00a0yuan\u00a0will be halved once again for micro-and-small enterprises.According to the previous policy, for micro-and-small enterprises, the corporate income tax on annual taxable income of\u00a0less than 1 million yuan was 2.5 %<\/strong>, and that of between one million to three million yuan was 10%. Which is to say, with the new policy coming out,\u00a0the later will be\u00a0reduced from 10 % to 5 %<\/strong>.\"\"<\/p>\n
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For example: if the taxable income of a micro-and-small enterprise is 3 million yuan, then its corporate income tax payable in 2022 is 125,000 yuan (100*2.5%+200*5%), and the actual tax rate is already as low as 4.17%!\u00a0<\/section>\n
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VAT credit refunds on a big scale<\/strong><\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n
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To improve the cash flow of enterprises, promote consumption-driven investment, and further improve the system for refunding VAT credits,\u00a0we will issue\u00a0VAT credit refunds\u00a0on a big scale this year. We will give priority to micro and small enterprises,refunding outstanding VAT credits to them in one lump sum by the end of June, while also fully refunding newly added credits.With a focus on\u00a0supporting manufacturing, the government\u00a0will work to fully resolve problems in refunding VAT credits in manufacturing, research and technical services, environmental protection, electricity and gas, and transportation industries. Such a substantial increase in VAT credit refunds will help strongly boost market confidence.Tax refunds and cuts are expected to total 2.5 trillion yuan this year. VAT credit refunds will account for 1.5 trillion yuan of this sum and all go straight to enterprises.\"\"<\/p>\n
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Additional tax deductions for R&D costs<\/strong><\/section>\n<\/section>\n
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We will enhance the policy on granting addition tax deductions for R&D costs,\u00a0raising the deductions coverage for small and medium sci-tech enterprises from\u00a075% to 100%<\/strong>.<\/section>\n<\/section>\n<\/section>\n<\/section>\n
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Preference on individual income tax<\/strong><\/section>\n<\/section>\n
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We will improve the supporting measures for the three-child policy,\u00a0make sure expenses for\u00a0children under three\u00a0part of the special additional deductions for individual income tax, and develop public-interest childcare services to ease the burden of raising a family.As soon as the new policy is introduced, we can enjoy\u00a0education deduction of 1,000 yuan per month for each child\u00a0not after his\/ her three-year-old but\u00a0from birth<\/strong>.<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>\n<\/section>","protected":false},"excerpt":{"rendered":"

The fifth session of the 13th National Committee of CPPCC\u00a0had it closing ceremony at the Great Hall on March 10th. But have you known about the\u00a0new changes\u00a0mentioned in the government work report? This year, for\u00a0small...<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-5338","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\nChina Will Provide 2.5 Trillion for Tax Rebate and Reduction - elitestage.cn<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.elitestage.cn\/de\/china-will-provide-2-5-trillion-for-tax-rebate-and-reduction\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China Will Provide 2.5 Trillion for Tax Rebate and Reduction - elitestage.cn\" \/>\n<meta property=\"og:description\" content=\"The fifth session of the 13th National Committee of CPPCC\u00a0had it closing ceremony at the Great Hall on March 10th. 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But have you known about the\u00a0new changes\u00a0mentioned in the government work report? This year, for\u00a0small and medium-sized enterprises, the best news is the tax rebate policy. 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