Small and micro businesses tax scope to expand

Premier Li Keqiang on April 2nd chaired a State Council executive meeting, the meeting proposed to Small and micro businesses by levying enterprise income tax preferential policies for the upper limit of the range of implementation, the taxable income 60000 yuan to further increased greatly, and the policy deadline extended until the end of 2016.

Small and micro businesses is a force of promoting entrepreneurship, security of employment, an active market. This year's government work report pointed out, to further expand the scope of the tax concessions Small and micro businesses, reduce the burden of enterprises. Just entered April, Small and micro businesses will usher in a major positive.

Small and micro businesses has been the national tax policy support. Provisions of China's enterprise income tax law, small low profit enterprises that meet the conditions, according to 20% enterprise income tax, follow-up and increase favourable strength. Since January 1, 2010, the annual taxable income below 30000 yuan Small and micro businesses, by levying income tax. Since January 1, 2012, halving the tax standard increased to 60000 yuan, that is to say Small and micro businesses annual taxable income in 60000 yuan and the following are enjoying halved policy.

director of the State Administration of Taxation Wang Jun said, at present, nearly 10000000 households Small and micro businesses directly enjoy preferential tax. The tax by half, only this one, there are more than 1200000 households Small and micro businesses to enjoy preferential. Improve the tax by half the preferential policy is beneficial to adjust the upper limit, according to the actual situation, will make about 6000000 Small and micro businesses further benefit.

          in recent years, the State Council promulgated a number of Small and micro businesses preferential tax policy, tax cuts as part of Small and micro businesses, has brought direct benefits. But because the scope of preferential policies to narrow, consistent with the Small and micro businesses cuts less in number, a heavier tax burden is still the important factors restricting Small and micro businesses to entrepreneurship and innovation.

in this year's NPC and CPPCC proposal had suggested to gradually expand the tax preferential benefit side, such as the Small and micro businesses by half 60000 yuan of collection of enterprise income tax threshold appropriate increase. At present Small and micro businesses of the income tax rate of 20%, than the ordinary enterprises only 25% tax rate is 5 percentage points lower, still on the high side.

with the development of the economic environment changes, such as inflation and reduced purchasing power, the average scale of enterprises continuously increases and other factors, the identification standard Small and micro businesses should also keep pace with the times.

in addition, our current tax system on the Small and micro businesses are still not very favorable. Small and micro businesses are engaged in low margin industries such as processing enterprises, the doorsill is low, competition is strong, the tax on their impact is far large and medium-sized enterprises, to Small and micro businesses to provide policy care is necessary, other countries also doing. To further reduce the burden Small and micro businesses, the most crucial is not income tax cuts, but to reduce tax. Financial Strategy Research Institute president Gao Peiyong also mentioned China Academy of Social Sciences, held in February 22nd this year, the second session of the Zhuoya Law Forum on data display, the turnover tax, VAT, business tax, consumption tax, the sum of the three accounts for about 65% of all tax. This proves the reform of circulation tax on Small and micro businesses burden of great significance.

in any case, the good news come in a throng, let us see the government reform, support Small and micro businesses determination and courage. Director Wang Jun also said in the previous interview with the media, there will be Small and micro businesses to get more tax incentives to support this year. For example, the government work report proposed to expand the trial to replace business tax with value-added tax(VAT) to railway transport, postal services, telecommunications and other industries, especially " industry ", there is life service industry, there are millions of enterprises, which Small and micro businesses accounted great, incorporated to replace business tax with value-added tax(VAT) after the pilot will directly benefit. (China economic network)