Preferential Policies For Registered Companies In 2010

In 2010, more and more preferential policies will be applied to small and medium enterprises, especially small and small enterprises. 4 employment support policies, which began last December and expired at the end of this year, were extended for another year. Small and medium enterprises, especially small profit enterprises and difficult enterprises, will have more warming policies next year.

Yesterday, the Ministry of human resources and social security, the Ministry of Finance and the State Administration of Taxation jointly issued a notice to announce the implementation of the 4 employment support policies, which expired in December last year and extend at the end of this year, for another year.

These four policies are "allowing the difficult enterprises to hold back social insurance premiums within a certain period", "phasing down four social insurance rates", "using unemployment insurance funds to help difficult enterprises to stabilize their jobs" and "encouraging difficult enterprises to stabilize their workforce through the training of on-the-job workers."

The notice stressed in particular that the focus should be placed on small and medium-sized enterprises with difficulty. Under the same conditions, priority should be given to the application of social insurance premiums, social insurance allowances, job subsidies and on-the-job training subsidies for small and medium-sized enterprises.

SME business stabilizes

Small and medium-sized enterprises are an important force in China's economic and social development. Li Yizhong, Minister of industry and information technology, yesterday reported to the Standing Committee of the National People's Congress about the promotion of the development of small and medium-sized enterprises. As of the end of September this year, China's small and medium-sized enterprises reached 10 million 231 thousand, which exceeded 99% of the total number of enterprises. At present, the value of final products and services created by SMEs is equivalent to about 60% of GDP. The amount of tax paid is about 50% of the total tax revenue of the state, providing nearly 80% of urban employment.

After the outbreak of the international financial crisis, small and medium-sized enterprises have been struggling. The central government has promulgated a series of policies and measures to promote the development of small and medium-sized enterprises. It includes reducing interest rates of banks and financial institutions on a number of occasions, raising the export tax rebate rate of some commodities for the 7 time, implementing the transformation of value-added tax, and abolish more than 100 administrative and institutional fees.

Li Yizhong said, at present, the production and operation of small and medium-sized enterprises has stabilized and picked up. In the 1~8 months of this year, profits and taxes were increased by 1.6% and 10.4% respectively.

Increase policy support

Starting from next year, in addition to the 4 employment support policies that have been postponed, the small profit enterprises will also receive a one-year income tax preference. Their income will be reduced to 50% of the taxable income and the enterprise income tax will be paid at 20% tax rate.

Li Yizhong said that next year will increase fiscal and tax policy support, and gradually expand the size of the central budget to support the development of small and medium enterprises, and implement and improve various preferential tax policies for SMEs. In particular, we should implement the preferential tax policy for small and small enterprises next year.

However, Zhao Hengqun, a professor of taxation at Dongbei University of Finance and Economics, told CBN reporters that at present, China only has a corresponding definition of SMEs from the tax law, but there is no uniform standard in terms of social and economic statistics. This has affected the implementation of preferential policies to a certain extent.

For example, the preferential tax policies to be implemented next year will only apply to enterprises that are relatively sound in accounting, and can be audited by tax authorities. Many small and medium enterprises with regular fixed tax payment are not included in preferential policies.

Yesterday, Li Yizhong also said that the development of small and medium-sized enterprises is still facing many difficulties and problems. For example, the contradiction between supply and demand of financing is still outstanding, participation in government procurement is still more difficult, structural adjustment and transformation of development mode are more difficult, statistics and monitoring work of SMEs is relatively weak, the relevant system is not perfect, and the government's support for small and medium-sized enterprises needs to be further strengthened.