China's Trillion-Yuan Tax Cut
According to a news published on 19th January 2022 on the website of China’s State Taxation Administration: from 2016 to 2021 the total number of new “Tax and fee reduction” has exceed 8.6 trillion yuan nationwide. “Our tax authorities will take further measures to implement more tax and fee reduction policies to better stabilize the economic and promote high-quality development.” Wang Jun the Commissioner of China’s State Taxation Administration said.
The estimate amount of new added “Tax and fee reduction” will exceed 1 trillion yuan in 2021. Among them, policies such as boosting the operation of the industrial economy, promoting the guarantee of energy and electricity, and effectively and efficiently implementing tax deferral, it is expected to handle tax deferral (fees) of 200 billion yuan for small- and medium-sized enterprises (SMEs) in the manufacturing industry, and 27 billion yuan of tax deduction, refund and deferral for coal power and heating enterprises. The China Tax system will make every effort to implement the policy of adding deduction of R&D expenses that have been "upgraded" twice this year, and enterprises will enjoy a tax reduction and exemption of 33.3 billion yuan in advance.
The data shows that the tax authorities continue to expand "contactless" tax payment services, realizing that nearly 90% of tax-related matters and 99% of tax returns can be processed online. In 2021, the number of new tax-related market entities is expected to be about 13 million, an increase of 13.6% year-on-year.