Qingpu Taxation

In order to facilitate taxpayers to understand and grasp tax preferential policies in a timely manner, and to better play the tax role of Taxation in helping the public to start businesses and innovate, the General Administration of Taxation issued in April 2017 the Guidelines for Tax Preferential Policies of "Innovation for the Public to Start Businesses" (hereinafter referred to as "Guidelines"), which are generally welcomed by taxpayers. The CPC Central Committee and the State Council continue to increase their support for innovation and entrepreneurship, and have launched a series of new preferential tax policies. While earnestly carrying out the implementation, the General Administration of Taxation has timely followed up and sorted out the latest Guidelines, which were launched during the National "Shuangchuang" Week in June 2019.

The Guidelines collect 89 preferential tax policies and measures for innovation and entrepreneurship, which have been launched in China up to June 2019, covering the whole life cycle of enterprises from start-up to development. Among them, 78 tax incentives have been introduced since 2013.

The Guidelines continue the style of 2017 and are structurally divided into introduction, compilation of preferential items and compilation catalogue of policy documents. Each preferential item is divided into enjoyment subject, preferential content, enjoyment condition and policy basis. The compilation of preferential items continues to classify and sort out the tax preferential policies applied in the initial, growth and maturity stages of enterprises according to the three stages. It shows the latest achievements of tax preferential policies supporting entrepreneurship and innovation in content.

—— In terms of promoting entrepreneurship and employment, the scope of tax reduction by half for small and micro-profit enterprises has gradually expanded from less than 300,000 yuan of annual taxable income to less than 3 million yuan, the starting point of VAT has increased from 30,000 yuan of monthly sales to 100,000 yuan, and the policy of entrepreneurship and employment for key groups such as college graduates and veterans has been "marked up and expanded". And the poor people in the archived Lika are included in the policy scope.

—— In terms of encouraging scientific and technological innovation, first, in order to further promote the incubation of innovation subjects, the main enjoyment bodies of the policies of science and technology enterprise incubators and university science and Technology Parks exempting from VAT, real estate tax and urban land use tax have been extended to provincial incubators, University Science and technology parks and the public space for national record-keeping; venture capital enterprises and angel investment The policy of personal income tax has been extended to the whole country. Secondly, in order to further promote the aggregation of venture capital, financial institutions have extended the credit line from 100,000 yuan to 10 million yuan for individual households exempting from VAT on loans to small and micro enterprises and individual business households, and financial institutions have signed loan contracts with small and micro enterprises to exempt from stamp duty. Thirdly, in order to further promote the gathering of innovative talents, personal income tax should be reduced on the cash reward for the transformation of scientific and technological achievements of posts. Fourthly, in order to further promote innovation capability, R&D fees plus deductions are gradually increased, R&D fees entrusted by enterprises abroad are included in the scope of additional deductions. The proportion of R&D fees plus deductions of all enterprises is increased from 50% to 75%, and the accelerated depreciation policy of fixed assets has been extended to all manufacturing areas. Fifth, in order to further promote the development of innovative industries, the application conditions of preferential income tax policies for software and integrated circuit enterprises are further relaxed.

"Guidelines" can be inquired on the website of the General Administration of Taxation. The majority of taxpayers can compare with the "Guidelines" to find tax preferences suitable for their own development and fully enjoy the policy dividends. Tax authorities will also continue to deepen the reform of "release control clothing" and constantly innovate service initiatives to ensure that "double-creation" preferential policies landed more convenient and smooth.