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    The New Industry Support Scheme Reported To &Nbsp; &Nbsp; Seven Industry Income Tax Is Expected To Halve.

    2010/11/20 9:20:00 90

    The Income Tax Rate Of The Seven Strategic Emerging Industries Is Reduced By Half The Policy Support

    "We have passed the drafted documents."

    In November 18th, an official of the Ministry of industry, who did not want to be named, revealed to the "China Times" reporter.


    This is about increasing strategic emerging industries.

    Policy support

    The proposals on strength have been reported to the relevant departments of the State Council recently.


    The China Times reporter learned exclusively.

    Seven strategic emerging industries

    After the expiration of the policy of "three exemption and three halves", enterprises will enjoy it.

    Income tax rate

    On the basis of 15%

    Reduce by half

    The privilege, and this one

    Favoured policy

    It will also become an important topic of this year's central economic work conference.


    Ministry of industry and Commerce proposes tax cuts


    According to the above officials, the Ministry of industry and Commerce convened interviews with experts and enterprises a few months ago, and discussed and formulated the draft for promoting the development of new industries.


    "For enterprises engaged in seven strategic emerging industries such as new energy and new materials, it is suggested that tax incentives be increased. After the" three exemption and three halves "preferential treatment is expired, consideration can be given to reduce the income tax rate by half on the basis of 15%.

    The official told our reporter.


    The so-called "three exemption and three reduction" means that eligible enterprises can be exempted from enterprise income tax from the first to third years of operating income, and will be reduced by half from fourth to sixth years.

    In accordance with the provisions of the new enterprise income tax law, enterprises that meet the requirements include enterprises engaged in energy conservation, environmental protection, comprehensive utilization of methane, desalination and other industries besides the state key public facilities.


    Eligible enterprises are still expanding. With the final determination of the seven strategic emerging industries, enterprises of energy conservation, environmental protection, new generation of information technology, biology, high-end equipment manufacturing, new energy, new materials and new energy vehicles and other industries have begun to enjoy "three exemption and three reduction".


    "Tax cuts can lighten burdens, expand enterprise production and encourage enterprises to invest. The biggest advantage is to enhance their ability to deal with crises."

    Dou Weidong, chief financial officer of Environmental Engineering Company, said to reporters: "the scope of strategic emerging industries has involved almost all levels, and even some well-known enterprises that have just been pformed.

    For enterprises, this is equivalent to a large amount of money subsidized by the government.


    Jin Tao, an associate professor of Economics Research Institute of Xiamen University who has been engaged in related research for a long time, thinks that only one tax preference can increase the annual profit of enterprises by 20%.


    "If the corporate income tax is cut by half, the company can pay less than hundreds of thousands or even millions of taxes, which will speed up the cash flow, and it will still have a great impact on the medium-sized enterprises that have just entered the right track."

    Cai Xiaoyong, general manager of Beijing Technology Co., Ltd.


    In fact, the state has given precedence to tax incentives for hi-tech companies.

    In China, the income tax of high and new technology enterprises is paid according to the 15% tax rate, while the average enterprise is 25%.

    In R & D, not only will the tax on all the costs of R & d be waiver, but on this basis, the tax exemption will be calculated according to the 1.5 fold method, that is, 10 million of the enterprise income and 1 million of the R & D link, then the enterprise only needs to pay the income tax according to the 8 million 500 thousand base.

    {page_break}


    Decision making intensive statement


    "All this is expected to be finalized at this year's central economic work conference."

    The above official said.

    Increasing tax preferences will also become an important topic for the upcoming Central Economic Work Conference.


    On the eve of the convening of the meeting, the central authorities have rushed to various places to make a thorough investigation.

    On from November 11th to 12th, Premier Wen Jiabao of the State Council visited the paramount supermarket, the metropolitan government community, the Guangzhou broadcasting and pportation financial electronic Limited by Share Ltd, the Chinese Academy of Sciences Guangzhou biological medicine and Health Research Institute, the wo Xin Analytical Instrument Co., and the East ho gushing water environment renovation project.


    Obviously, these enterprises and projects belong to the strategic emerging industries mentioned by Premier Wen repeatedly over the past year.


    For the first time, strategic emerging industries entered the public opinion. In September 2009, Wen Jiabao hosted the three Forum on strategic emerging industries development and listened to 47 economic and technological experts' opinions and suggestions on strategic emerging industries.

    In November of the same year, Wen Jiabao delivered a speech to the capital scientific and technological circles in the Great Hall of the people, emphasizing the importance of scientific choice of strategic emerging industries.

    Following the central economic work conference held in December, "developing strategic emerging industries" was mentioned again.


    By the beginning of February 2010, the inter ministerial group on accelerating the development of strategic emerging industries was announced by the national development and Reform Commission.

    In March, Wen Jiabao made a report on the government work report to the Eleventh National People's Congress.

    On September, Premier Wen Jiabao chaired a State Council executive meeting to deliberate and adopt the decision of the State Council on accelerating the cultivation and development of strategic emerging industries.


    It is also in this year that strategic emerging industries are heating up.


    On the 16 day of this month, held on the "strategic emerging industries development forum" of the high tech fair, Peng Sen, deputy director of the national development and Reform Commission, told reporters that the strategic emerging industries plan may be introduced in the first half of next year, and put forward the idea that the future strategic emerging industries will be divided into three steps.


    The first stage, by 2015, the strategic emerging industries will form a basic pattern of healthy development and coordinated promotion, which will significantly enhance the role of industrial upgrading. The proportion of added value to GDP will reach 8%. In the second stage, by 2020, the added value of strategic emerging industries will account for about 15% of GDP. In the third stage, by 2030, the overall innovation and industrial development level of strategic emerging industries will reach the world's advanced level, providing strong support for sustainable economic and social development.


    However, in the view of some people, the strategic emerging industries are taking great strides. At the same time, we should not neglect the problems of technological innovation and business models.


    A few days ago, the responsible person of the NDRC openly responded to the media, saying that it would further innovate the way of Finance and taxation and financial support, especially in the aspect of tax incentive policies, and effectively improve the tax incentive policy. In light of the specific characteristics of the industry, we should formulate support policies such as turnover tax, income tax, consumption tax and business tax, so as to form a policy tool to encourage social resources to develop strategic emerging industries.


    Also on the 16 day of the high tech fair, Xi Guohua, Vice Minister of the Ministry of industry and commerce, said that at present, China promulgated the new industrial policy. At that time, the Ministry of industry and commerce would actively cooperate with other ministries and commissions to promote the vigorous development of new industries.

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