How Big Is The Impact Of The Camp Reform On All Walks Of Life?

The most important tax reform in China over the past 22 years - the "camp to increase" reform was officially launched in the country three days ago.

At the national gold securities teleconference, tax experts from four big accounting firms said that after the expansion of the tax reform, the real estate, construction, pportation, finance, life services, entertainment industry and small-scale taxpayers will be affected to varying degrees.

He mentioned in the meeting that the first priority of the reform is to be clear: 1) strictly abide by the principle of "only reducing or not increasing" (500 billion is the inference made by the government according to the feedback data, the actual scale may be more or less than the data); 2) the most important reform and changes are: the real estate is included in the deduction scope; 3) the impact of the value-added tax is not only on the income side, but also on the expenditure side.

For the benefit of different taxpayers affected by the reform, the tax official thinks that the original VAT taxpayer and the small scale taxpayer benefit greatly; on the other hand, they are divided according to the industry field.

From big to small: life services, real estate, finance, construction.

One by one analysis: for the first point, the original value-added tax payers benefit from the expansion of the deduction range.

In view of the second point, the tax burden of life service enterprises, especially small scale taxpayers, will be reduced.

The tax official said that for small and medium enterprises, more small-scale taxpayers would be applied, and the taxable service revenue would not reach 5 million.

In accordance with the income of 3% to pay, so that no management input, manpower and material resources for business development.

It is worth noting that an enterprise can not be turned back from a small taxpayer to a general taxpayer, so the enterprise should consider carefully the identity of the taxpayer.

He believes that the increase in business tax will be a tax cut for knowledge-based service enterprises.

For enterprises in the field of technology services,

Concerned about the income and the corresponding deduction, if an enterprise's sales are less than the input, it will not have to pay value-added tax, it can be retained later.

For enterprises with large income and no profits, it is very good to control VAT and benefit from it.

For the third point, the degree of industry benefit analysis.

He thought:

Real estate companies will benefit more.

For example: enterprise material procurement, sales Housing output tax is 11%, hardcover repair housing purchase of household appliances, furniture, materials, can be deducted by 17% of input tax.

Secondly, the construction industry and the financial industry: financial control and compliance requirements are relatively high, the management of the financial sector will be more stringent, and the management right of the sale will be larger.

For large and strong construction enterprises, if manual labor is reduced as much as possible, more automatic mechanical replacement will be used, which will benefit greatly after the camp is changed to increase.

Because labor costs can not be deducted, machinery purchase, maintenance, maintenance and other expenses can be deducted, so the industry has changed to increase and scale up the scale of intra industry enterprises, so that enterprises and downstream customers can negotiate more space and capacity.

But for small businesses, the pressure will be greater after the camp is changed to increase. In general, the construction industry will benefit less.

It is not difficult to find that for labour intensive enterprises, the increase of business to business may push them towards the direction of "labor intensity reduction" and make adjustments in the business mode.

The tax chief believed that because labor expenditures could not be tax deductible, the camp changed to encourage capital expenditure, purchase equipment, or to some extent support machines instead of labor.

For enterprises with high labor costs, they can choose to send labor dispatch services as labor expenditure.

But this way is in line with the relevant provisions of the labor department.