The large-scale tax rebate policy will be implemented today to provide strong support for stabilizing the economy

2022-04-30 0 By

The Executive meeting of The State Council held on March 21 confirmed the implementation of large-scale VAT retention against tax rebate policy arrangements, to stabilize the macroeconomic market to provide strong support.The meeting decided to provide nearly 1 trillion yuan of tax rebates to small and micro businesses in all industries and to individual businesses that pay tax according to the general tax method.Among them, the stock tax credits will be fully refunded before the end of June, and the incremental tax credits will be fully refunded on a monthly basis from April 1.The reporter learned from the State Administration of Taxation that on April 1, the first day of the implementation of VAT retention tax rebate policy, eligible micro enterprises stock retention tax rebate and other business officially started, many enterprises submitted tax rebate application to the tax department, enjoy the national tax rebate “gift package”.To stay against the tax rebate is to return the VAT at the end of the period.A chain VAT deduction mechanism is implemented, in which the amount of tax payable is the balance of the current output tax deducted from the input tax.Output tax refers to VAT calculated on the basis of sales volume and applicable tax rate;Input tax refers to the VAT paid on purchasing raw materials, etc.When the input tax is greater than the output tax, the uncredited input tax is retained as a tax credit.According to statistics, from 2019 to 2021, tax authorities handled a total of 1,233.9 billion yuan in tax rebates, which are large in scale, targeted and effective, and have played a positive role in promoting high-quality development of the manufacturing and other real economies.This year, the CPC Central Committee and The State Council decided to implement a new combination of tax and fees support policies, among which the large-scale VAT retention tax rebate policy is the “highlight”.According to Xie Wen, director of the Goods and services Tax Department of the State Administration of Taxation, withholding tax refund is an important institutional arrangement for China’s VALUE-ADDED tax.This year’s tax rebate policy is of great significance in many ways as it is large in scale, weighty in weight, and brings more benefits to market entities.On the one hand, it helps stabilize the macroeconomic market.Demand contraction to the current our country economy, supply shocks, is expected to triple pressure of the weaker large-scale leave for tax rebates and tilt to small micro enterprises, manufacturing, and other key industries, encourage enterprises to increase expansion transformation and upgrading, boost confidence, market main body development is the important measure of strengthening across cycle and reverse cycle regulation, to stabilize the macroeconomic market to provide strong support.On the other hand, it will help market players to bail out development.Leave for tax refund this year’s new cash flow will increase as the market main body of about 1.5 trillion yuan, the taxes in the form of “real money” actually returned to the enterprise, enterprise income at sight directly, and for expansion, be badly in need of financial support at the enterprise, to lend a hand, tough problems and taking a ride, power enterprises in the production and business operation economical to run.At the same time, it will help optimize and perfect the VAT system.In recent years, China has continued to reform and improve the VAT system, and the system of withholding tax rebate has grown from scratch to excellent.This year, we will implement a large number of tax credits and tax rebates to make the DESIGN of the VAT system more scientific, improved and balanced.In the long run, it is beneficial to create a better tax environment for the development of enterprises.According to Xie Wen, compared with the previous tax rebate policy, this year’s tax rebate policy is bigger, wider and deeper.In terms of policy coverage, it not only comprehensively covers small and micro enterprises, but also focuses on six industries.This year, small and micro businesses will account for more than 90 percent of the total number of enterprises benefiting from the tax rebate policy.The manufacturing sector accounted for about 30 percent of the new tax rebates, the largest among all industries.By focusing on the key and key links in the national economic operation, industrial chain and supply chain, the tax rebate dividend and reform effect will be released precisely.Both expand the scope of incremental full rebate, and for the first time involved the retention of tax credits.On the basis of fully refunding incremental tax credits for advanced manufacturing industries in the past, this year, six industries, including small and micro enterprises and manufacturing, will be included in the scope of 100% incremental tax rebates, and for the first time, the amount of retained tax credits of these enterprises will be refunded, with unprecedented intensity and scale.We will both strengthen the central government’s support and give full play to the role of local governments.To ensure that the tax rebate policy is not compromised, the central government has increased transfer payments this year, and local governments have also actively raised funds. Both the size of tax rebates and the level of guarantee are the largest in history.The Beijing national accounting institute the fiscal and taxation policy and application research institute xu-hong li said in an interview with People’s Daily reporter, further strengthen the implementation of the final leave for VAT tax refund system not only is advantageous to the optimization of value-added tax system, reflect the characteristics of value added tax neutral, in line with the international practice, also reflects the achievements of the modern tax system reform in our country.Xu-hong li pointed out that to micro, small and medium enterprises, transportation and manufacturing difficulties such as industry, science and technology enterprises, and other countries in the development of high quality strategy of industry is significant, especially for the large investment scale, high historical precipitation of funds of enterprises, the stock, incremental tax rebates, along with all the enterprise obtain the refund money back,The broader release of the vitality of the pillar industries of the national economy is a significant positive for improving the overall macroeconomic fundamentals and a positive signal for the capital market.Zhang Bin, vice president and researcher of the Chinese Academy of Social Sciences, told People’s Daily online that China is facing new downward economic pressure in the face of complex and severe domestic and international situations, and it is crucial to maintain stable economic operation.This year, we will implement large-scale tax retention, tax rebate and substantial digestion of existing tax retention and tax rebate policies as the main measures to support the combined tax and fees policy. It will provide about 1.5 trillion yuan of cash flow to market entities, which will effectively relieve the financial pressure of enterprises, help them survive and develop, and thus play an important role in macroeconomic stability.”At the same time, the end of the tax withholding from the deduction of the next period to the current tax rebate, will reduce the cost of capital in the system of enterprises, is conducive to enhance the confidence and expectation of enterprise development, is more in line with the requirements of modern VAT system of major reform measures.”Zhang said.Xie wen, said the next step, the tax authorities at all levels will be under the leadership of the party committees and governments at all levels, fiscal, taxation, departments of the people’s bank of coordination mechanisms, continues to catch floor, superior service, quality, and the effect, the strong urge to strength, to ensure that leave to fell fine settled and implement tax rebate policy, at the same time, strictly to strengthen the audit of leave for tax refund application, find risk timely doubt,Different measures should be taken according to the risk level, especially to strictly prevent and crack down on illegal acts of fraudulently withholding VAT for tax refund, so as to escort the smooth implementation of withholding VAT for tax refund.Source: People’s Daily Online