The Ministry of Finance and Taxation issued an announcement that 31 provinces (autonomous regions and municipalities) will continue to reduce the “six taxes and two fees” – Industry Watch – Market Information Network

The Ministry of Finance and Taxation issued an announcement that 31 provinces (autonomous regions and municipalities) will continue to reduce the “six taxes and two fees”

Market Information Network 2022-04-26 10:31:42 Source: People’s Daily Online Comments:

Beijing, April 25 (Reporter Wang Guan) The reporter learned from the State Administration of Taxation on the 25th: With the approval of the local government, the finance and taxation departments of 31 provinces (autonomous regions and municipalities) have recently issued announcements to clarify that small-scale value-added tax taxpayers, Small and low-profit enterprises and self-employed industrial and commercial households are subject to a maximum reduction of “six taxes and two fees” at a rate of 50%. Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, 5 cities under separate state planning shall be implemented in accordance with the provisions of this province.

“Six taxes and two fees” refers to resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding stamp tax on securities transactions), cultivated land occupation tax, education surcharge, and local education surcharge. In January 2019, in accordance with the deployment of the Party Central Committee and the State Council, the Ministry of Finance and the State Administration of Taxation issued an announcement stating that “six taxes and two fees” can be reduced within 50% of the tax amount for small-scale value-added tax taxpayers. The policy implementation period is from January 1, 2019 to December 31, 2021. At that time, 31 provinces, autonomous regions and municipalities directly under the Central Government all reduced the “six taxes and two fees” according to the maximum rate of 50%.

In February of this year, with the approval of the State Council, 14 departments including the National Development and Reform Commission and the State Administration of Taxation issued a circular, proposing several policy opinions on promoting the recovery and development of difficult industries in the service sector, requesting that the “six taxes and two fees” policy be reduced by Small-scale VAT taxpayers are extended to small low-profit enterprises and individual industrial and commercial households. On March 1, the Ministry of Finance and the State Administration of Taxation issued an announcement, clarifying that the implementation period of the “six taxes and two fees” policy reduction will be extended to December 31, 2024, and the applicable subjects will be expanded from the original small-scale VAT taxpayers to Small and low-profit enterprises and individual industrial and commercial households further expand the scope of market entities enjoying this policy. The announcement clarifies that the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall determine according to the actual situation of the region and the needs of macro-control, and reduce the levy within 50% of the tax amount for small-scale value-added tax taxpayers, small and low-profit enterprises and individual industrial and commercial households.

Li Xuhong, a professor at Beijing National Accounting Institute, believes that the expansion of the “six taxes and two fees” reduction and exemption policy will play a more active role in coping with the downward pressure on the economy, ensuring the sustainable development of small, medium and micro enterprises, and ensuring people’s livelihood and employment. The “six taxes and two fees” reduction and exemption policy is an important supplement to the tax reduction of main tax categories in my country. It promotes the formation of a relatively complete tax reduction and fee reduction policy system, which is conducive to the formation of policy synergies, reduces the tax and fee burden of market entities, and stimulates market dynamism.

In order to ensure that taxpayers can enjoy the preferential policies of reduction and exemption in a timely, accurate and convenient manner, the State Administration of Taxation issued the Announcement on Further Implementation of the “Six Taxes and Two Fees” Reduction and Exemption Policy for Small and Micro Enterprises on Collection and Management Issues, detailing the determination of small and low-profit enterprises. It is clarified that taxpayers can claim reductions or exemptions by themselves, and do not need to submit additional materials. When a taxpayer declares, according to his actual situation, he/she should select the corresponding subject option of the reduction or exemption policy in the relevant declaration form and confirm the start and end time of the applicable reduction or exemption policy.

Local taxation departments are actively doing a good job of publicity and guidance on policies to ensure that the “six taxes and two fees” reduction and exemption policies are in place. Taking the Heilongjiang Provincial Taxation Bureau of the State Administration of Taxation as an example, the bureau automatically identifies and judges taxpayers who meet the conditions of the “six taxes and two fees” reduction and exemption policy based on the basic information of taxpayers and corporate income tax settlement and payment information, and uses the electronic tax bureau to accurately Push function, timely delivery of warm reminders. At present, the Heilongjiang Provincial Taxation Bureau has implemented precise reminders for the newly added small and low-profit enterprises and individual industrial and commercial households that meet the conditions for reduction and exemption on the basis of the original small-scale taxpayers.

“People’s Daily” (April 26, 2022 Edition 06)

Responsible editor: Liu Yuan