Since the 18th National Congress of the Communist Party of China, how have Chongqing achieved the implementation of tax and fee reduction policies? What is the sense of gain of market entities?
On October 9, a reporter from the Chongqing Municipal Taxation Bureau learned that from the tax burden borne by enterprises, the macro tax burden of Chongqing enterprises in in 2021 was 3.1 percentage points lower than in 2012. Over the past ten years, the city's newly-operated tax-related market entities have reached 1.9789 million, with an average annual increase of more than 190,000, gradually forming a virtuous cycle of "letting water to raise fish" and "more water and more fish". In the interview with
, tax incentives continued to expand, which also became a common experience for many market entities in Chongqing.
Chongqing tax staff went to the enterprise to preach and guide tax preferential policies. Photo provided by Chongqing Taxation Bureau
From macro "tax burden reduction" to micro "cost reduction"
Tax reduction and fee reduction stimulate the vitality of market entities
90s Zeng Huxin is a villager at Bajiao Temple in Nanda Street, Yongchuan District, Chongqing, and one of the earliest "family farmers" in the local area.
In the past decade, the production of organic tomatoes, the flagship product of his farm, has increased year by year, increasing by 230%. Zeng Huxin has deeply felt the tax preferential policies in recent years.
"Since the start of the business, production has been rising and income has also been rising, but the intensity of tax incentives has become increasingly greater." Zeng Huxin calculated the calculations and from 2013 to 2021, the annual sales revenue of the farm increased from less than 50,000 yuan to more than 1.3 million yuan. At the same time, the VAT exemption standard for small-scale taxpayers is also increasing, from monthly sales of 20,000 yuan to 30,000 yuan, 100,000 yuan, and 150,000 yuan. The annual VAT exemption by farms has also reached nearly 40,000 yuan.
This also gives Zeng Huxin more confidence in building a large farm. He hired more unemployed villagers at home to participate in farm planting, which brought a " family farm fever" in the local area.
At present, in Yongchuan District, , there are nearly 500 such family farms, with tens of thousands of employees, which has promoted the local rural economic development and solved the employment problems of some rural populations. "Working at home is getting better and better." After returning home in 2017, the two brothers Fang Zeyu and Fang Zewei in the village grew vegetables with Zeng Huxin. The current per capita annual income has reached 50,000 yuan.
There are many market entities like Zeng Huxin who benefit from tax incentives.
Data from the Chongqing Taxation Bureau shows that since the implementation of large-scale tax cuts and fee reductions in 2019 alone, Chongqing has accumulated a total of nearly 100 billion yuan in new tax cuts, equivalent to 10.1% of the city's tax revenue. Judging from the tax burden borne by enterprises, the macro tax burden of Chongqing enterprises in 2021 was reduced by 3.1 percentage points compared with 2012.
"Over the past ten years, tax cuts and fee reductions have gone from macro-'tax burden' to micro-'cost reduction', showing the characteristics of large scale, wide coverage, and accurate policy focus." A relevant person in charge of the Chongqing Taxation Bureau said that over the past ten years, from "structural tax cuts" to "general tax cuts and structural tax cuts at the same time", to "adhering to the combination of phased measures and institutional arrangements, tax cuts and tax refunds at the same time", tax cuts and fee reductions have been gradually expanded and progressed at the same time, which has played a key role in achieving the stability and development of the macro economy. In addition, while directly reducing the overall burden on market entities, the policy focuses more on serving small and micro enterprises, manufacturing and technological innovation, taking into account both fairness and effect.
Tax-related market entities have increased by more than 190,000 per year
gradually formed a virtuous cycle of "water-releasing fish" and "more water and many fish"
R&D expenses pre-tax additional deduction policy, which is a typical general tax preferential policy that has continued to expand in recent years.
In 2017, the additional deduction ratio of technology-based small and medium-sized enterprises will be increased from 50% to 75%, in 2018, the additional deduction ratio of 75% will be expanded to all qualified enterprises, the additional deduction ratio of R&D deduction ratio of manufacturing enterprises will be increased to 100% in 2021, and the additional deduction ratio of R&D expenses of technology-based small and medium-sized enterprises will be increased to 100% in 2022, and the additional deduction ratio of R&D expenses of technology-based small and medium-sized enterprises will be increased to 100%, and the efforts to support enterprises' R&D innovation are continuously increased.
Chongqing Houyuan Auto Parts Co., Ltd. (hereinafter referred to as "Houyuan Auto Parts") is the beneficiary of this policy.Wu Zhigang, general manager of
年合彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩彩Over the past four years, thanks to the additional deduction policy of R&D expenses, Houyuan Auto Parts has accumulated a total reduction and exemption of corporate income tax of more than 600,000 yuan. In addition, due to the continuous expansion of preferential policies for income tax for small and micro enterprises, the company has reduced and exempted corporate income tax by nearly 770,000 yuan since 2013. In addition, the policies of six taxes and two fees, tax incentives, and resettlement of disabled people with and refunding , have enjoyed a total of more than 3.2 million yuan in tax incentives over the past ten years.
"We have developed very fast in recent years. More and more and more tax incentives have allowed us to invest more sufficient funds in R&D and increase the added value of the products." Wu Zhigang said that in terms of R&D expense investment, the company has grown by more than 8% for three consecutive years, and insisted on R&D to exchange for fruitful results: in the past ten years, the company has successively obtained more than 30 national patents, and in the seat connector sector, it has broken the monopoly of foreign "Fortune 500 companies" in the domestic market segment. The company's revenue has also continued to rise, from the revenue of only more than 200,000 yuan at the beginning of its establishment in 2011 to the estimated sales revenue of more than 40 million yuan in 2022, an increase of nearly 200 times.
The more R&D investment, the more tax incentives it will be, which will play a significant role in encouraging enterprises to continue to strengthen R&D and stimulate the innovation vitality of enterprises.
data shows that over the past ten years, the number of enterprises in Chongqing enjoying additional tax deductions for R&D expenses increased from 154 in 2012 to 7,192 in 2021, and the additional deduction amount increased from less than 1.28 billion yuan at the initial stage to 31.97 billion yuan in 2021. A total of 23,310 enterprises enjoyed additional deductions of 97.29 billion yuan.
Associate Professor of , School of Economics and Law, Southwest University of Political Science and Law, and a researcher at the China Institute of Finance and Taxation Law, believes that over the past ten years, tax and fee reductions have combined the dual goals of short-term countercyclical adjustment and long-term promotion of supply-side structural reform . The implementation of policies is closely focused on market entities, and corresponding adjustments and optimizations are made according to the macroeconomic situation, which has played an important role in stimulating the development vitality of Chongqing market entities, promoting industrial transformation and upgrading, and helping to stabilize the city's economy.
data shows that over the past ten years, Chongqing has accumulated 1.9789 million new tax-related market entities, with an average annual increase of more than 190,000, gradually forming a virtuous cycle of "releasing water to raise fish" and "more water and more fish".
"Tax reduction and fee reduction will benefit the people, and hide richer than the people ." A relevant person in charge of the Chongqing Taxation Bureau said that it will continue to promote the implementation of tax refund, tax reduction and fee reduction policies and measures quickly, accurately and stably, and use the "subtraction" of taxes to exchange for the "addition" of economic growth, and further help Chongqing's high-quality economic and social development .
Upstream News Reporter Sun Qiongying
Editor: Chen Lu Editor: Liao Lei Reviewer: Feng Fei
