1. Exemption or suspension of prepayment of value-added tax (VAT)
(1) Starting from April 1, 2021, small-scale taxpayers that have incurred VAT-taxable sales, with combined monthly sales not exceeding RMB 150,000 (or quarterly sales not exceeding RMB 450,000, if a quarter is considered as a taxable period) are exempted from the levy of VAT
(2) Starting from April 1, 2022 to December 31, 2022, small-scale taxpayers of value-added tax are exempted from value-added tax (VAT) on their taxable sales income to which the 3% levy rate applies; and prepayment of VAT is suspended for prepayment of VAT items to which the 3% prepayment rate applies.
(3) From January 1, 2022 to December 31, 2022, prepayment of VAT is suspended for branches of air and rail transportation enterprises. any prepaid VAT from the February 2022 tax filing period to the date of issuance of the document will be refunded.
(4) From January 1, 2022 to December 31, 2022, taxpayers will be exempted from VAT on income derived from the provision of public **** transportation services.
(5) From May 1, 2022, to December 31, 2022, taxpayers shall be exempted from VAT on income derived from the provision of express delivery and collection services of essential living materials for residents.
(6) From January 1, 2019 to December 31, 2025, VAT exemption shall be granted to units and individuals who donate self-produced, commissioned or purchased goods through public welfare social organizations, people's governments at the county level and above and their constituent departments and subordinate agencies, or directly and without compensation, to targeted poverty-eradication areas. The above policy may continue to be applied if the targeted poverty elimination areas realize poverty elimination within the policy implementation period.
(7) From January 1, 2019 to December 31, 2023, income derived from the provision of incubation services by state-level and provincial-level science and technology business incubators, university science and technology parks, and state-recorded crowdsourcing spaces to the target incubatees is exempted from VAT.
(8) Units and individual industrial and commercial households that donate self-produced, commissioned-processed or purchased goods for use in responding to the pneumonia epidemic caused by the new coronavirus infection through public welfare social organizations and state organs such as people's governments and their departments at or above the county level, or directly to hospitals undertaking the task of epidemic prevention and control, are exempted from value-added tax (VAT), consumption tax (CST), urban maintenance and construction tax (UMTC), education surcharge (Eufo), and local education surcharge.
2. Adding and deducting VAT input tax
From April 1, 2019 to December 31, 2022, taxpayers in the production and living service industries will be allowed to add 10% to their taxable amount according to the amount of deductible input tax for the current period.
From October 1, 2019 to December 31, 2022, taxpayers in the living service industry are allowed to offset their tax payable in accordance with the current period's deductible input tax plus 15%.
3. Tax credit refund
Increase the strength of the policy of refunding the end-of-period tax credit for VAT for small and micro enterprises, expand the scope of the policy of fully refunding the incremental tax credit for VAT in advanced manufacturing industries on a monthly basis to the eligible small and micro enterprises (including individual industrial and commercial enterprises, hereinafter referred to as "individual enterprises"), and refund the one-time tax credit of the stock of small and micro enterprises.
Increase "manufacturing", "scientific research and technology services", "electricity, heat, gas and water production and supply industry", "software and information technology services, ecological protection and environmental governance, and transportation, storage and postal services (hereinafter referred to as manufacturing industries). The policy of refunding the tax credit at the end of the VAT period has been expanded to enterprises (including individual industrial and commercial households, hereinafter the same) in the manufacturing industry and other industries that meet the conditions, and the one-time refund of the tax credit for the stock of enterprises in the manufacturing industry and other industries has been made.
(2) Income Tax Preferential Policies
1. Reduction of Taxable Income
From January 1, 2022 to December 31, 2024, small micro-profit enterprises with annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan will be granted a reduction of 25% of their annual taxable income, and will pay the enterprise income tax at a rate of 20%.
From January 1, 2021 to December 31, 2022, the portion of the annual taxable income of small micro-profit enterprises that does not exceed 1 million yuan shall be reduced by 12.5% of the annual taxable income, and the enterprise income tax shall be paid at a rate of 20% (i.e., an effective tax rate of 2.5%);
2. Increase in the Pre-tax Deductions
(1) Small, medium, and micro enterprises shall be entitled to deductions prior to tax from January 1, 2022 to December 31, 2022, the newly purchased 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 pre-tax deduction of 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 is 3 years, 100% of the unit value can be deducted in the current year in a lump sum; the minimum depreciable life of 4 years, 5 years, 10 years, 50% of the unit value can be deducted in the current year in a lump sum, and the rest of the 50% of the depreciation will be deducted in the remaining years in accordance with the provisions of the depreciation calculation for pre-tax deduction.
Enterprises that choose to apply the above policy for the current year's insufficient deduction of losses 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.
(2) The actual R&D expenses incurred by science and technology-based small and medium-sized enterprises in carrying out R&D activities, which are not formed into intangible assets and recognized as current profit and loss, shall be deducted on the basis of actual deduction in accordance with the regulations, and then deducted in accordance with the 100% of the actual amount incurred before tax from January 1, 2022 onwards; and in the case of the formation of intangible assets, shall be amortized before tax in accordance with the 200% of the cost of the intangible assets from January 1, 2022 onwards. amortized before tax.
(3) Manufacturing enterprises to carry out R & D activities in the actual incurred R & D costs, not formed intangible assets included in current profit and loss, in accordance with the provisions of the actual deduction on the basis of the amount of deduction from January 1, 2021, and then in accordance with the actual amount of 100% of the pre-tax deduction; the formation of intangible assets since January 1, 2021, in accordance with the cost of intangible assets 200% of the pre-tax amortization. Amortization.
(4) Enterprises and individuals donating cash and goods for the purpose of responding to the pneumonia epidemic of new coronavirus infection through public welfare social organizations or state organs such as the people's governments and their departments at or above the county level are allowed to deduct the full amount when calculating taxable income.
Enterprises and individuals donating goods directly to hospitals tasked with epidemic prevention and control for use in responding to pneumonia outbreaks caused by new coronavirus infections are allowed to deduct the full amount when calculating taxable income.
Legal Basis
Resolution of the Standing Committee of the National People's Congress on Approval of the Central Accounts for 2020
(e) Continuously Deepening Reform of the Fiscal and Tax System. Focusing on the goal and task of establishing a modern fiscal and taxation system, it has accelerated reforms in key areas. Reform programs for the division of financial authority and expenditure responsibility between the central and local governments in the areas of ecological environment, public *** culture, natural resources, and emergency relief were issued and implemented, and reforms for the division of financial authority and expenditure responsibility below the provincial level were actively promoted. The principle of legalizing taxation has been implemented, with the Deed Tax Law and Urban Maintenance and Construction Tax Law being introduced smoothly, and the draft Stamp Duty Law being submitted to the Standing Committee of the National People's Congress (NPC) for initial deliberation in accordance with procedures. The transfer of part of the state-owned capital at the central level to enrich the social security fund was fully completed,*** transferring a total of 1.68 trillion yuan of state-owned capital from 93 central enterprises and financial institutions, and 295 central enterprises were newly included in the scope of state-owned capital operation budgeting. Accelerate the construction of the government financial reporting system, the central sector to prepare the scope of the previous year's 40 expanded to 108, the local level to achieve the full coverage of the preparation of comprehensive financial reports of the sub-government of the hierarchy.