Promoting Non-governmental Investment and Responsibility to Release 33 Preferential Policies of the State Administration of Taxation

The State Administration of Taxation issued a notice a few days ago to clarify the six categories of 33 preferential policies involving private investment in the current tax policy provisions. The circular requires that tax authorities at all levels take effective measures to earnestly implement these tax policies and promote the healthy development of private investment.

Previously, the Ministry of Railways, the State-owned Assets Supervision and Administration Commission, and the China Banking Regulatory Commission have issued relevant policies to provide a larger stage for the development of private capital and encourage private capital to play a greater role. The good and frequent introduction is considered as private capital is ushering in the spring, and its origin is that in February this year, the State Council made clear the time limit for the introduction of private investment implementation rules in the first half of this year. The seven fields of railways, municipalities, finance, energy, telecommunications, education, and medical care have been listed as work tasks that need to be implemented in 2012 to encourage private capital to enter.

Earlier, in May 2010, the "State Council's Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment" ("New 36 Articles") was introduced to explicitly encourage and guide private capital into industries and fields where laws and regulations did not explicitly prohibit access. . However, over the past year or so, the implementation of the “New 36 Articles” has not been satisfactory. Private capital has encountered “glass doors” and “spring doors”. Some researchers pointed out that private capital does not enjoy equal status in the market, and it is not only subject to discrimination in access, but also often suffers unfair treatment in taxation.

According to the notice of the State Administration of Taxation, private investment is an important force for promoting China’s economic development, adjusting industrial structure, prospering urban and rural markets, and expanding social employment. Further encouraging and guiding the healthy development of private investment is of great significance in enhancing the vitality of economic development, improving people's livelihood, and promoting social harmony. Tax policy is an important tool for the country's macro-control, and plays an important role in encouraging and guiding private investment. The tax authorities at all levels must fully understand the importance of expanding private investment, resolutely implement the decision-making and deployment of the central government, conscientiously implement the relevant taxation policies, actively play the role of taxation functions, and promote the healthy development of private investment.

According to relevant persons from the State Administration of Taxation, the current tax policy stipulates that there are many private investment policies. In order to facilitate taxation authorities at all levels to implement the taxation policies that encourage and guide the healthy development of private investment, the State Administration of Taxation systematically scrutinizes the existing taxation policy provisions, and has collectively formed the “Taxation Policy to Encourage and Guide the Healthy Development of Private Investment” (hereinafter abbreviated as "Tax Policy") covers six categories and 33 items. VAT, consumption tax, business tax, corporate income tax, real estate tax, import duties and other taxes. Among them, encourage and guide the entry of private capital into 9 basic taxation policies in basic industries and infrastructure; encourage and guide private capital into municipal public utilities (1719.638, 0.00, 0.00%) and one tax policy in the field of policy-oriented housing construction; encourage 11 tax policies that guide private capital into the social undertakings field; encourage and guide private capital into taxation policies in the financial services field; encourage and guide private capital into one tax policy in the trade circulation; promote private enterprises to strengthen independent innovation There are 7 tax policies for transformation and upgrading.

The circular also requires tax authorities at all levels to further strengthen study and training so that the majority of tax cadres can become familiar with and master the relevant contents of the "Tax Policy." We must strengthen publicity and counseling for taxpayers, and publicize taxation policies widely to taxpayers through a variety of channels, such as the Tax Office, the tax website, and the 12366 tax service hotline. According to the characteristics of the taxpayer, the types of taxpayers should be subdivided, and publicity on policy interpretation, taxation procedures, etc. should be highlighted to help taxpayers accurately understand and enjoy relevant tax policies in a timely manner.

In order to ensure the implementation of the “Taxation Policy”, the State Administration of Taxation also requires all localities to earnestly implement the supervision and inspection of the implementation of taxation policies, follow up on the effectiveness of inspections, strengthen supervision and inspections, and regularly inform the implementation of the implementation of tax policies and implementation effects. Regularly carry out analysis and evaluation, strengthen investigation and feedback, keep abreast of problems encountered during implementation, study and put forward suggestions for adjusting and improving tax policies, and better promote the healthy development of private investment.