Fiscal Targeted Force Reducing Tax Rate For Small And Medium Enterprises Burden Reduction

< < p > > in order to further standardize < a href= "http://sjfzxm.com/news/index_f.asp > tax system < /a > fair tax burden, the Ministry of Finance and the State Administration of Taxation jointly issued a notice by the State Council, and decided that from July 1st this year, the rate of devaluation and unified VAT levy will be adjusted to 3% of the 6% and 4% VAT levied rates.

Experts believe that this will not only reduce tax burden on SMEs, but also simplify the collection procedures.

The devaluation tax rate can be regarded as a part of structural tax reduction and fiscal orientation.

It is expected that further steps will be taken in the next step, including the regulation of value-added tax rates and the general expansion from the low to the camp.

< /p >

< p > strong > directional force further reduce the burden of small and medium enterprises < /strong > /p >

< p > at present, China's value-added tax rate of 6% projects include tap water, small hydropower, construction products and biologicals. According to the 4% rate, items include consignment, pawn and auction products.

In addition, the current rate of VAT collection in China also includes 3% and 5% two stalls.

The 3% rate of the project is public pportation and other taxable services. The rate of collection is 5%.

The rate of 5% is not covered in the adjustment.

< /p >

The State Council executive meeting of < p > < < a href= > http://sjfzxm.com/news/index_z.asp > > < /a > > decided that from July 1st onwards, the collection rate of 6%, 5%, 4%, 3% four VAT applicable to certain general taxpayers such as tap water and small hydro power should be merged into one file. The levy rate of 3% according to the current simple tax assessment method will be reduced by 24 billion yuan for enterprises in related fields.

< /p >

< p > according to the notice of the two sector on the policy of levying value added tax rate, the Ministry of finance of the State Administration of Taxation has mentioned in the Circular of the State Administration of Taxation on the application of low value-added tax rates and simple measures to impose value-added tax on some goods, that taxpayers sell their used articles or sell secondhand goods by reducing the value added tax by half according to the 4% levy rate, and adjust them as follows: "according to the simple method, the value added tax shall be reduced by 2% according to the 3% levy rate".

< /p >

< p > prior to "Circular of the Ministry of Finance and the State Administration of Taxation on some issues concerning the implementation of the pformation of value-added tax in China", it is mentioned that eligible taxpayers "reduce the value added tax by half according to the 4% levy rate" and adjust it to "reduce the value added tax by 2% according to the simplified method in accordance with the 3% levy rate".

< /p >

< p > compared with tax rates, the rate of VAT collection is calculated by the tax authorities on the basis of the data collected by the tax authorities on the basis of the data collected by the tax authorities in the absence of a sound financial accounting system and the provision of tax objects and tax bases.

The rate of VAT levy applies to small scale taxpayers, and the tax rate applies to the general taxpayers who have annual VAT sales exceeding 5 million yuan standard.

< /p >

Liu Huan, vice president of Taxation School of Central University of Finance and Economics, said that the rate of VAT levy was reduced to 3% as a tax reduction measure for small and medium-sized enterprises, and it is also one of the measures to further implement structural tax reduction. P

Now the state has implemented preferential tax policies for small and micro enterprises. Enterprises with less than 20 thousand monthly turnover have already waived sales tax.

But there are still some small taxpayers whose business scale is higher than the tax exemption standard, but it can not reach the standard of the general taxpayer.

For this part of the enterprise, that is, small and medium-sized enterprises how to do, the state gave this statement.

< /p >

< p > Jin Dongsheng, deputy director of the Taxation Research Institute of the State Administration of Taxation, pointed out that the rate of collection of 4% and 6% is 3%, which is equivalent to that the state gives profits to small enterprises and is conducive to the development of small enterprises.

In addition, the significance of the notice lies in the simplicity of the procedure.

Deductions need corresponding management measures, which will be more complicated.

The simple way is not to deduct the accounting management, which is more conducive to simplifying the collection.

< /p >

< p > strong > value-added tax rate is expected to be low from < /strong > /p >

< p > Jin Dongsheng believes that the VAT levy rate can be considered as one of the initiatives of the tax policy, which will encourage the development of SMEs.

Both tax and management will lighten the burden of small and medium-sized enterprises.

Liu Huan pointed out that the small taxpayer has always been taken care of in China, but the tax burden is still heavy when the scale is not large but the standard is more than 20 thousand yuan.

Lowering the tax burden on these enterprises is a measure to further expand the preferential tax policies for small and medium-sized enterprises.

< /p >

Since the P April, the executive session of the State Council has passed a number of tax cuts, including preferential tax incentives for small and micro enterprises, promoting entrepreneurship and employment, stabilizing foreign trade and cleaning up charges related to enterprises.

Liu Huan said that the government will have more measures to ensure steady growth in terms of fiscal and tax policies in the future. As far as value-added tax is concerned, one of the priorities of the next reform will still be the expansion of the camp, and the target will be achieved in 12th Five-Year.

< /p >

< p > < < a href= > http://sjfzxm.com/news/index_p.asp > > structure > /a > tax reduction will focus on the small scale taxpayers. For the general taxpayers, the general tax payers of China's current value-added tax apply four, 17%, 13%, 11% and 6% tax rates.

Liu Huan said that the real difficulty of structural tax reduction is how the tax burden of general taxpayers should be lightened.

Other enterprises are reducing taxes, but this part of the enterprises do not reduce taxes, I am afraid that does not meet the basic spirit of tax reduction.

At present, the VAT rate is divided into four stalls, some of which are more common, and the general taxpayers pay more taxes than 17%. The tax burden is high, and the future is expected to be generally low in the tax rate regulation.

< /p >