It's only one month before May 1, when the pilot program of camp reform is fully launched, and the "gift package" of tax reduction of more than 511 billion yuan for the whole year is just around the corner. Then, as the biggest tax reform in recent years, what are the characteristics of the scheme design? What measures are taken to ensure that the tax burden of all industries is only reduced and not increased?
For industries that have implemented value-added tax,
The VAT reform has been pushed forward in an all-round way, with a more complete deduction chain and more deductible items, and the manufacturing industry and early pilot industries have benefited a lot
For the VAT reform, "all industries" mainly includes two parts: first, industries that have implemented VAT reform, including manufacturing, transportation, postal services, telecommunications industries and modern service industries that were previously included in the VAT reform pilot; Second, the four major industries that will be included in the pilot reform of the camp, including construction, real estate, financial industry and life service industry.
"After the full implementation of the VAT reform, the deduction chain will be more complete, and many former VAT taxpayers such as the VAT reform and manufacturing industry will see their tax burden decrease." Li Wanfu, director of the State Taxation Administration of The People's Republic of China Institute of Taxation, believes that the manufacturing industry must have factories and warehouses, and it is a big expense for enterprises to build or rent. It is of great significance to include the four major industries and new real estate in the pilot project at one time to reduce the burden on the real economy and promote the transformation and upgrading of the manufacturing industry.
Take the transportation industry as an example. When it was included in the pilot program of camp reform, many input taxes could not be deducted, and some enterprises experienced an increase in tax burden. With the full implementation of the reform of the camp, the scope of deduction will be further expanded, and the tax burden of these enterprises will gradually decline.
"every expansion of the camp reform will increase the deductible items, thus reducing the corporate tax burden." The person in charge of Anji Automobile Logistics Co., Ltd. introduced that at the beginning of the reform of the camp, due to the limitations of the pilot scope, enterprises could not obtain enough input tax deduction, and the tax burden increased. In 2114, the enterprise updated the means of transport and obtained more input tax deduction. This year's comprehensive push will further increase deductible items and further improve the tax burden of enterprises.
"When the four major industries are included in the camp reform, many travel expenses, conference expenses and logistics assets purchase and construction expenses incurred in the daily operation of enterprises can be deducted, which will generally lead to a 3%-4% reduction in tax burden." Liu Xiaozhi, financial manager of Sinotrans Fujian Co., Ltd., said that this will help improve the competitiveness of logistics enterprises and help them tide over the difficulties.
"expressway toll is an important cost for transportation enterprises. Transitional arrangements have been made in the pilot rules for the reform of the camp. In the future, the actual tax burden of transportation enterprises will be further reduced after the toll of crossing the bridge can obtain the VAT invoice. " Li Wanfu said.
The business tax rate of the construction industry and the real estate industry has been changed from 3% and 5% respectively to 11% of the value-added tax rate, but the tax burden of the whole industry will not increase.
The reform of the camp will be carried out in an all-round way, and the construction industry, real estate industry, financial industry and life service industry will all be included in the pilot scope, and the construction industry and real estate industry will be subject to 11% tax rate, while the financial industry and life service industry will be subject to 6% tax rate. The society is generally concerned that the construction industry and real estate industry have changed from the original business tax rate of 3% and 5% to the value-added tax rate of 11%. Will the tax burden increase if the tax rate increases?
"If the VAT rate is higher than the business tax rate, it will increase the corporate tax burden, which is actually a misunderstanding." Bai Jingming, deputy director of China Institute of Fiscal Science, believes that business tax is levied according to the turnover of enterprises, while value-added tax is levied according to the added value of goods and services, and the tax bases of the two are quite different. Although the value-added tax rate has increased, the tax burden of these two industries will not increase or even decrease because of the input tax deduction.
according to Bai Jingming's analysis, the main inputs of the construction industry are steel, bricks and tiles, cement and other building materials, which can be deducted at the VAT rate of 17%, and the deduction is quite strong. In particular, the plan also makes policy arrangements for the transition period in view of the business mode of enterprises contracting for work and materials, and contracting for work without materials. General taxpayers can choose to apply the simple tax method to the construction services provided by the contractor. Compared with the original business tax rate of 3%, the corporate tax burden is basically unchanged.
similarly, the current business tax rate of the real estate industry is 5%, and the tax rate of 11% will apply after the reform of the camp. However, due to the increase of input deduction, the tax burden will not rise. According to the reform plan, for real estate developers who apply to become general taxpayers, the tax will be paid at the rate of 11% VAT, and the cost of land leasing can be deducted from the sales. Among the real estate development costs, the land transfer fee is the largest, accounting for 31% to 41% of the total cost. Land transfer fees can be deducted from sales, which is very important for reducing the tax burden of real estate enterprises. In addition, small-scale taxpayers in real estate development enterprises who sell self-developed real estate projects are taxed at the rate of 5%, and the tax burden of such enterprises is not increased.
The financial industry and the life service industry
The business tax rate is changed from 5% to 6% of the value-added tax rate, and the industry tax burden will be significantly reduced
"How to ensure that the tax burden of all industries will only decrease but not increase is both an important and difficult point, and the reform plan has made great efforts in this regard." Hu Yijian, a professor at Shanghai University of Finance and Economics and president of the Institute of Policy and Governance, said that in order to achieve this goal, the plan not only gave full consideration to tax design, but also retained the original preferential business tax policy, and also introduced corresponding supporting measures according to the characteristics of various industries.
financial services are mainly engaged in financial insurance business activities, such as loan services, direct charge financial services, insurance services and financial commodity transfer. Life service industry covers a wide range, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other life services.
"From the perspective of tax burden comparison, without considering the input tax deduction, the 6% VAT rate is equivalent to the 5.66% business tax rate, which is very close to the current business tax rates of these two industries." Hu Yijian explained that after the reform of the camp, the deductible input tax of the financial industry and the life service industry will increase, and the tax burden of the two industries will be significantly reduced.
most of the offices in the financial industry are high-grade real estate, and the degree of electronic informationization is high, and the investment is large. By purchasing real estate and related equipment, and outsourcing technical services, the financial industry is likely to realize tax reduction. Judging from the relevant rules, the original preferential policies for business tax in the financial industry have been basically retained and continued after the reform of the camp. For example, interest income from financial interbank transactions is exempt from value-added tax, personal insurance for more than one year in the pilot is exempt from value-added tax, and agricultural insurance is exempt from value-added tax.
Life service industry is almost all-encompassing, and it is closely related to people's lives. The general taxpayer applies the tax rate of 6%, and the deductible items are also varied. For example, opening a gym, renting a venue, purchasing fitness equipment, etc. can all be used as input deduction; Opening a restaurant, buying and renting frontispiece, store decoration, kitchen equipment, etc. can also be used as input deduction.
"another obvious feature of the life service industry is the large number of small and micro enterprises. As small-scale taxpayers, these enterprises will be simply levied at a rate of 3% after the reform of the camp. Compared with the original business tax rate of 5%, these enterprises will reduce taxes by about 41%, and the effect is very obvious. " Hu Yijian stressed.
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