Detailed tax reduction and fee reduction "red envelopes"
Since the beginning of this year, the state has made great efforts to reduce taxes and fees, effectively reduce the burden on enterprises, and increase residents' income, which has become an important measure to deepen supply-side structural reform and promote high-quality economic development. Major tax cuts include:
-- Special additional deductions for individual income tax. Starting from January 1 this year, the policy of special additional deductions for individual income tax has been implemented, and taxpayers can enjoy six special additional deductions, such as children's education, continuing education, serious illness medical care, housing loan interest or housing rent, as well as supporting the elderly. In the first three quarters of this year, the two-step reform of personal income tax added 442.6 billion yuan in tax cuts and 1764 yuan in per capita tax cuts.
-- the policy of inclusive tax reduction for small and micro enterprises. On January 18, the Ministry of Finance and the State Administration of Taxation issued a circular implementing the policy of inclusive tax relief for small and micro enterprises, exempting small-scale VAT taxpayers with monthly sales of less than 100000 yuan (including capital) from VAT. At the same time, we will relax the standards for small and low-profit enterprises that can enjoy corporate income tax benefits, and it is estimated that the burden on small and micro enterprises can be reduced by about 200 billion yuan per year. In the first three quarters of this year, the inclusive policy of small and micro enterprises increased by 182.7 billion yuan in tax cuts.
-- deepening the reform of value-added tax. On April 1, deepening the reform of value-added tax was formally implemented. This round of deepening VAT reform mainly includes reducing the VAT rate, reducing the current tax rate of 16%, such as manufacturing, to 13%, and reducing the current tax rate of 10%, such as transportation, to 9%, leaving the first rate of 6% unchanged. At the same time, we will expand the scope of deduction for input tax, try out the tax refund system at the end of the period, and increase and deduct the input tax on production and living services, so as to ensure that the tax burden on all industries will only be reduced but not increased. In the first three quarters, the VAT reform added 703.5 billion yuan in tax cuts (of which, on May 1 last year, the VAT rate was adjusted by 118.4 billion yuan, and this year the VAT reform was deepened and the tax reduction was 585.1 billion yuan).
-reducing social insurance rates. From May 1, China has reduced the proportion of contributions to basic old-age insurance units for urban workers, and the proportion of unit contributions can be reduced to 16% in provinces where the proportion of contributions per unit was higher than 16%. At the same time, we will continue to reduce unemployment insurance and industrial injury insurance rates in stages. It is estimated that this reform measure is expected to reduce the burden on enterprises by more than 300 billion yuan this year. (reporter Wu Qiuyu)