1. VAT small-scale taxpayers are exempted from VAT.
Entitlement subject: VAT small-scale taxpayers.
Preferences: From April 1, 2022 to December 31, 2022, VAT small-scale taxpayers are exempted from VAT on taxable sales income to which the 3% levy rate applies, and VAT prepayment is suspended for pre-paid VAT items to which the 3% pre-payment rate applies.
Conditions for enjoyment: small-scale taxpayers applying 3% levy rate or advance levy rate.
Processing method: enjoyment upon declaration.
2. Taxpayers in the production and living service industries will continue to add 10% and 15% respectively to the current creditable input tax amount to offset the tax payable.
The subject of enjoyment: general VAT taxpayers in the production and living service industries.
Preferences: Article 7 of the Announcement of the General Administration of Customs of the Ministry of Finance and Taxation on the Policies Related to the Deepening of Value-Added Tax Reform (Announcement No. 39 of the General Administration of Customs of the Ministry of Finance and Taxation of the People's Republic of China in 2019) and Article 7 of the Announcement of the Ministry of Finance and Taxation on the Clarification of the Policy of Adding and Offsetting the Value-Added Tax of Living Services (Announcement of the Ministry of Finance and Taxation of the General Administration of Taxation of the People's Republic of China in 2019), which stipulate that production and living service industry VAT addition and credit reduction policy, the implementation period is extended to December 31, 2022.
The current creditable input tax credit for taxpayers in the production and living service industries will continue to be added to the taxable amount at 10% and 15% respectively.
3. Taxpayers are exempted from value-added tax (VAT) on income derived from the provision of public **** transportation services.
Subject: taxpayers providing public **** transportation services.
Preferences: From January 1, 2022 to December 31, 2022, taxpayers are exempted from value-added tax (VAT) on income derived from the provision of public **** transportation services.
4. Air and railroad transportation enterprise branches suspend prepayment of VAT.
The subject of enjoyment: air and railroad transportation enterprises.
Preferred content: from January 1, 2022 to December 31, 2022, branches of air and rail transportation enterprises suspend prepayment of VAT.
5. Exemption of VAT on incubation services of qualified science and technology business incubators, university science and technology parks and crowdsourcing spaces.
The subject of enjoyment: state-level and provincial-level science and technology business incubators and state-recorded crowdsourcing spaces.
Preferred content: from January 1, 2022 to December 31, 2022, income obtained from providing incubation services to incubated objects is exempted from VAT.
(2) Enterprise Income Tax
1. Preferential Income Tax Reductions and Exemptions for Small and Micro-profit Enterprises and Individual Business Enterprises.
The subject of enjoyment: small micro-profit enterprises and individual industrial and commercial households.
Preferences:
(1) During the period from January 1, 2021 to December 31, 2022, small micro-profit enterprises with annual taxable income not exceeding 1 million yuan will be subject to a 12.5% reduction in taxable income and will pay enterprise income tax at a rate of 20%.
(2) During the period from January 1, 2021 to December 31, 2022, for the portion of the annual taxable income of individual industrial and commercial households whose business income does not exceed 1 million yuan, the individual income tax shall be reduced by half on top of the existing preferential policies.
2. Further implementation of preferential income tax policies for small and micro enterprises.
The subject of enjoyment: small micro-profit enterprises.
Preferential content: from January 1, 2022 to December 31, 2024, the annual taxable income of small micro-profit enterprises exceeding 1 million yuan but not exceeding 3 million yuan will be reduced by 25% of the taxable income, and the enterprise income tax will be paid at a rate of 20%.
3. The policy of deferring payment of some taxes and fees for the fourth quarter of 2021 and the first and second quarters of 2022 for small, medium and micro enterprises in the manufacturing industry.
The subject of enjoyment: manufacturing small and medium-sized micro-enterprises (including sole proprietorships, partnerships, and individual businesses).
Preferential content:
(1) Manufacturing SMEs that meet the prescribed conditions may, after filing tax returns in accordance with the law, defer payment of enterprise income tax, individual income tax (except for withholding and payment on behalf of others), domestic value-added tax (VAT), domestic consumption tax (DCT), urban maintenance and construction tax (UMCT), urban construction tax (UCT), urban maintenance and construction tax (UCT), and urban and rural development tax (URDT) for the period of October, November, and December of 2021, or for the fourth quarter of 2021 (Q4) (except for withholding and payment). urban maintenance and construction tax, education surcharges and local education surcharges, excluding taxes and fees paid when applying for invoices from the tax authorities. Medium-sized enterprises in the manufacturing industry can defer payment of 50% of the above taxes and fees, and small and micro enterprises in the manufacturing industry can defer payment of all of the above taxes and fees. The deferral period is 9 months. Upon expiration of the deferral period, the taxpayer shall pay the deferred taxes and fees in accordance with the law.
For the period from January 1, 2022 to February 27, 2022 has been paid into the treasury belongs to the period of October, November, December 2021 (monthly payment) or the fourth quarter of 2021 (quarterly payment) deferred payment of the above taxes and fees, enterprises can voluntarily choose to apply for a refund of the tax (fees) and enjoy the continuation of the deferred payment policy.
(2) Micro, small and medium-sized enterprises in the manufacturing industry that meet the prescribed conditions may, after filing tax returns in accordance with the law, defer payment of enterprise income tax, individual income tax, domestic value-added tax, domestic consumption tax, and urban maintenance and construction tax, education surcharge, local education surcharge, and local education surcharge, for the period of January, February, March, April, May, and June 2022 (paid on a monthly basis), or for the first quarter or second quarter of 2022 (paid on a quarterly basis), and enjoy the continuation of the deferral policy. , education surcharges, local education surcharges, excluding taxes and fees paid on behalf of withholding, collection and payment and when applying for invoices from tax authorities. Medium-sized enterprises in the manufacturing industry can defer payment of 50% of the above taxes and fees, and small and micro enterprises in the manufacturing industry can defer payment of all of the above taxes and fees for a period of six months. Upon expiration of the deferral period, the taxpayer shall pay the corresponding month or quarterly taxes and fees in accordance with the law.
For the above taxes and fees which have been paid into the treasury before February 28, 2022 and belong to the period of January 2022, the enterprises can voluntarily choose to apply for the refund of taxes and fees and enjoy the deferred payment policy.
4. Pre-tax deduction of income tax for equipment and apparatus of micro, small and medium-sized enterprises.
The subject of enjoyment: small, medium and micro enterprises.
Preferential content: Micro, small and medium-sized enterprises in the period from January 1, 2022 to December 31, 2022 newly acquired equipment, apparatus, unit value of more than 5 million yuan, in accordance with a certain percentage of the value of the unit voluntarily choose to deduct the income tax before the enterprise income tax. Among them, the implementation regulations of the Enterprise Income Tax Law stipulate that the minimum depreciable life of the equipment and apparatus for three years, 100% of the unit value can be deducted in the current year in a one-time pre-tax deduction; the minimum depreciable life of four, five, 10 years, 50% of the unit value can be deducted in a one-time pre-tax deduction in the current year, and the remaining 50% of the depreciation of pre-tax deduction in the remaining years of the calculation of depreciation in accordance with the provisions of the pre-tax deduction.
Enterprises that choose to apply the above policy for the current year's insufficient deduction for the formation of the loss can be carried forward to make up for the next five tax years, and enterprises enjoying other policies to extend the loss carry-forward period can be implemented in accordance with the current provisions.
5. The public welfare donation expenditures in accordance with the regulations are allowed to be deducted before income tax.
Body: enterprises or individuals who have made public welfare donation expenditures.
Preferential content: enterprises through public welfare social organizations or the people's government at or above the county level (including the county level) and its constituent departments and directly under the institutions, for charitable activities, public welfare undertakings of the donation expenditures in the annual profit of 12% or less of the portion of the total profit is allowed to be deducted in calculating taxable income; more than 12% of the total profit of the annual portion of the total profit is allowed to be carried forward to the next three years to calculate the taxable income deduction. The portion exceeding 12% of the total annual profit is allowed to be carried forward and deducted in the next three years when calculating the taxable income.
Individuals who make donations to education, poverty alleviation, relief and other public welfare and charitable causes through public welfare social organizations, people's governments at or above the county level and their departments within the territory of the People's Republic of China, the public welfare donation expenditures incurred can be deducted in calculating taxable income in accordance with the relevant provisions of the Individual Income Tax Law.
6. Increase the proportion of R&D expenses plus deduction for manufacturing enterprises to 100%.
The subject of enjoyment: manufacturing enterprises.
Preferential content: since January 1, 2021, manufacturing enterprises to carry out R & D activities in the actual incurred R & D costs, not formed intangible assets included in the current period of profit and loss, in accordance with the provisions of the actual deduction on the basis of the actual amount of deduction, then according to the actual amount of 100% pre-tax deduction; the formation of intangible assets, according to the intangible asset cost of 200% of the amortization of the cost of the pre-tax.
Legal Basis
The Provisional Regulations of the People's Republic of China on Value-added Tax (VAT)
Article 16 stipulates that, "Taxpayers who engage in tax-exempted or tax-reduced items shall account for the sales of tax-exempted or tax-reduced items separately; if they do not account for the sales separately, they are not allowed to be exempted from or reduced in the tax. "
Article 21, paragraph 2 (b) provides, "Where taxable sales behavior occurs to which the tax exemption provisions apply, no special VAT invoice shall be issued."
Article 27 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Project of Changing Business Tax to Value-added Tax" (Cai Shui [2016] No. 36), Annex I of the document, "Measures for Implementation of the Pilot Project of Changing Business Tax to Value-added Tax", stipulates that, "Input tax of the following items shall not be deducted from the output tax amount: (a) ...... VAT-exempt items ......"
Article 25 of the Law of the People's Republic of China on Administration of Taxation Collection stipulates that "Taxpayers must truthfully file tax returns in accordance with the provisions of laws and administrative regulations, or the reporting deadlines and contents of the returns determined by the tax authorities in accordance with the provisions of the laws and administrative regulations, and submit tax returns, financial and accounting statements, and other tax information that the tax authorities may require the taxpayers to submit in accordance with the actual needs of the taxpayers". Taxpayers to submit other tax information."