The State Council continued the second wave of 11 tax and fee reduction policies, and the beneficiaries were quickly seen

In order to bail out enterprises, this year the central government requires the implementation of large-scale tax and fee reduction policies, and a number of expired preferential tax policies will continue.

According to CCTV News Network, on January 19, Premier Li Keqiang presided over an executive meeting of the State Council, and the preferential tax policies for 11 involving science and technology, employment and entrepreneurship, medical care, and education were extended until the end of 2023. This is the continuation of the second wave of expired tax reduction and fee reduction policies, and at the end of last year, the State Council continued the preferential policies for individual taxes such as separate tax calculation of year-end awards.

Professor Li Xuhong of the National Accounting Institute in Beijing told First Finance and Economics that the continuation of the 11 expired preferential tax policies is a specific measure to implement the spirit of the Central Economic Work Conference and continue to implement the tax reduction and fee reduction policy. The coverage of these 11 preferential tax policies is relatively wide, involving many important aspects such as science and technology, employment and entrepreneurship, medical care, and education. This year, under the triple pressure of demand contraction, supply shock and weak expectations, the mainland's economic development is stabilizing market confidence and reducing the burden on market players through tax reduction and fee reduction, which is of positive significance for achieving the policy goal of seeking progress in stability and is conducive to the counter-cyclical and cross-cyclical adjustment of the mainland's macro economy.

Continuation policy one: good for science and technology business incubators, university science and technology parks, and heavy damage to space

The meeting made it clear that eligible science and technology enterprise incubators, university science and technology parks and co-working space incubation services are exempted from VAT, and real estate and land provided to incubated objects for their own use and land are exempted from real estate tax and urban land use tax.

In order to encourage enterprise innovation, China exempts national and provincial science and technology enterprise incubators, university science and technology parks and state-filed co-working spaces for their own use, as well as real estate and land provided to incubated objects for use free of charge or through leasing, and exempts them from vat on income derived from providing incubation services to incubated subjects.

The incentive expired at the end of last year. The meeting decided to extend this policy until the end of 2023, which is beneficial to technology business incubators, university science and technology parks and co-working spaces.

Continuation Policy 2: Support venture capital companies and angel investment individuals

The meeting decided to continue to relax the criteria for the identification of start-up technology enterprises, and all eligible venture capital enterprises and angel investment individuals who invest in them will be deducted from taxable income according to a certain proportion of the investment amount.

In order to support the development of venture capital investment, the state can deduct 70% of the taxable income of eligible venture capital enterprises and angel investment individuals who have invested in start-up technology enterprises for 2 years. The meeting renewed the policy at the end of last year and signaled relaxation of the criteria for the identification of start-up technology companies.

In fact, in 2019, the finance and taxation department relaxed the above-mentioned criteria for the identification of start-up technology enterprises, that is, the number of employees in the conditions of start-up technology enterprises was relaxed from no more than 200 to no more than 300, and the total assets and annual sales revenue did not exceed 30 million yuan to no more than 50 million yuan.

Continuation Policy Three: Support the employment of retired soldiers

The meeting said that for enterprises to recruit self-employed retired soldiers and retired soldiers to engage in self-employment, taxes and related surcharges will continue to be deducted according to a certain limit.

In order to further support self-employed retired soldiers to start their own businesses, the state deducts the value-added tax, urban maintenance and construction tax, education fee surcharge, local education surcharge and personal income tax actually payable in that year according to the limit of 12,000 yuan per household per year within 3 years from the month of registration of individual industrial and commercial households. Provinces can increase the above standard by 20%.

In addition, if an enterprise recruits a self-employed retired soldier, signs a labor contract with him for a term of more than 1 year and pays social insurance premiums in accordance with the law, from the month of signing the labor contract and paying social insurance, within 3 years, according to the actual number of recruits, the value-added tax, urban maintenance and construction tax, the education fee surcharge, the local education surcharge and the enterprise income tax concession are deducted sequentially. The quota standard is 6,000 yuan per person per year, and the local maximum can be increased by 50%.

The preferential policy expired at the end of last year, and the meeting continued the policy.

Continuation policy four: support the wholesale trade market for agricultural products

The meeting called for exemption from wholesale agricultural product markets, farmers' market real estate tax and urban land use tax.

In order to further support the construction of the agricultural product circulation system, the state is temporarily exempted from real estate tax and urban land use tax on real estate and land specially used for the operation of agricultural products in agricultural product wholesale markets and farmers' markets. For the real estate and land used in the wholesale market for agricultural products and the farmers' market that operate other products at the same time, the real estate tax and the urban land use tax shall be exempted according to the proportion of the area of the trading site for other products and agricultural products.

This policy expired at the end of last year, and this time it was extended, which is good for the wholesale trade market for agricultural products.

Continuation Policy Five: Support public transportation

The meeting decided to exempt urban land use tax on operating land such as urban bus stations.

In order to support the development of public transportation, the state exempts urban land use tax from urban land use tax for the operation of urban bus terminals, road passenger terminals and urban rail transit systems. The policy, which expired at the end of last year, was continued.

Continuation Policy Six: Support local relief of reservoir migration support funds

The meeting requested that provincial governments continue to be authorized to decide on their own to exempt, suspend or reduce the local reservoir migration support fund.

Previously, the state made it clear that during the "Thirteenth Five-Year Plan" period, each province can independently decide to exempt, suspend or reduce the local reservoir migration support fund based on the local economic development level, the security status of relevant public utilities and facilities, and the social affordability.

Continuation policy seven: support medical personnel and staff for epidemic prevention

The meeting clarified that temporary subsidies for medical personnel and epidemic prevention workers, bonuses and personal income tax in kind such as preventive drugs issued by units to individuals are exempted.

After the outbreak of the new crown epidemic in 2020, in order to support the prevention and control of the epidemic, the state exempted medical personnel and epidemic prevention workers participating in the epidemic prevention and control work from personal income tax for temporary work subsidies and bonuses obtained in accordance with the standards stipulated by the government. Temporary work subsidies and bonuses for epidemic prevention and control personnel determined at or above the provincial level are also exempt from individual tax.

In addition, the in-kind goods (excluding cash) such as medicines, medical supplies, and protective equipment issued by the unit to individuals for the prevention of pneumonia infected by the new coronavirus are not included in the income of wages and salaries, and are exempt from personal income tax.

After the policy expired at the end of last year, it continued to be extended until the end of 2023, which is good for relevant personnel.

Continuation policy eight: support for epidemic prevention medical equipment and pharmaceutical enterprises

The meeting requested that the registration fees for drugs and medical devices related to epidemic prevention products be exempted.

In order to support the prevention and control of the epidemic and reduce the burden on enterprises, the state exempts medical device product registration fees for products that enter the emergency approval procedure for medical devices and are related to the new coronavirus, and exempts drugs from drug registration fees for drugs that enter the special approval procedure for drugs and treat and prevent novel coronavirus pneumonia.

This policy was also due at the end of last year, and this continuation is beneficial to relevant epidemic prevention enterprises.

Continuation Policy Nine: Support for colleges and universities to run schools

The meeting decided to exempt college student apartment property tax and stamp duty on related lease contracts.

In order to support colleges and universities and optimize logistics support services for colleges and universities, the state exempts college student apartments from real estate tax. Stamp duty is exempted from stamp duty on college student apartment lease contracts signed with college students.

This policy originally expired at the end of last year, and this extension is good for universities.

Continuation policy ten: good commodity reserve enterprises

The meeting demanded that the self-use real estate and land of enterprises undertaking the policy business of commodity reserves be exempted from real estate tax and urban land use tax.

In order to support the development of the national commodity reserve business, the state has given some preferential tax policies to the commodity reserve management company and its direct subordinate library, including the above exemption from real estate tax and urban land use tax, and also exempted from the relevant stamp duty. This policy, which expired at the end of last year, has been extended, benefiting eligible commodity reserve enterprises.

Continuation Policy 11: Support third-party enterprises for pollution prevention and control

The meeting decided to reduce the third-party enterprise income tax on pollution prevention and control by 15%.

In order to encourage the professional and large-scale development of pollution prevention and control enterprises and better support the construction of ecological civilization, the state levies enterprise income tax at a reduced rate of 15% on qualified third-party enterprises engaged in pollution prevention and control. This policy expired at the end of last year, and this time it will be extended until the end of 2023, which is good for third-party enterprises in pollution prevention and control.