“Notice on the Further Reinforcement of Implementation of Preferential Policies on the Tax Revenue of Small and Micro Enterprises” (Notice in abbreviation) issued by State Taxation Administration is an overall deployment of the work. Now the interpretation of this Notice is as follows:
Ⅰ. The Principal Background for Issuing this Notice
ⅰ. Small and micro enterprises are the critical components of the socialist market economy, playing the vital role of prospering the market, promoting the employment, improving living standards and maintaining social stability. In recent years, under the general background of “Maintaining growth, adjustingstructure, promoting reform and improving people's livelihood”, supporting the development of small and micro enterprises can, to a great extent, multiply the reform dividends and thus boost economic development.
ⅱ. It is of great need to comprehensively implement the preferential policies for small and micro enterprises. The preferential policies for small and micro enterprises are the combination of policy dividends. Aiming to counterbalance the influence of the financial crisis, the state government has continuously come up with and improved all sorts of preferential policies such as value added tax, sales tax and business income tax to gradually increase the degree of preferences for tax revenue. In early April of this year, the State Council has expanded the target range of preferences implementation from the original half-reduction taxing policy (10% tax rate) towards the taxpayers whose annual income tax are below 60,000 RMB to the taxpayers whose annual income tax are below 100,000 RMB. During the last six months, the tax authority has made certain achievements in unifying the ideology, strengthening the promotion of policies, optimizing tax services, transforming the workstyle and highlighting the work obligation. This year’s Sep. 17th, the executive meeting of the State Council has decided that from the Oct. 1st, 2014 to the end of 2015, the taxpayers of small-scale value added tax and sales tax could be free from value added tax and sales taxas long as their monthly sales amounts are below 20,000 RMB. The preferences for the tax revenue of small and micro enterprises are a kind of combination of high quality, which is why the arrangement and implementation of these policies shall be conducted properly.
ⅲ. It is of great importance to remove the last barriers hindering the implementation of tax revenue policies to ensure that small and micro enterprises are able to truly enjoy tax preferences. Based on the investigation, certain tax authorities still have the lack of special knowledge, efforts and cohesion of the service provided, which contributes to the limited range of preferences small and micro enterprises could enjoy. Since the first half of the year, the leaders in the State Council has made a couple of important instructions and the State Council has dispatched the workgroups for several times to supervise the regional work. The comprehensive implementation of preferential policies for small and micro enterprises has already been regarded as a critical political mission in the tax system. The duty of the tax authority is sacred and glorious. Therefore, great efforts of the implementation shall be made.
Ⅱ. The Major Content of this Notice
ⅰ. The incessant and vast publicity of tax revenue preferences for small and micro enterprises shall be conducted and the public opinion environment shall be maintained as positive. The job of broadening the publicity channels is necessary and can be as diverse as TV, broadcast, websites, newspaper, journals, 12366 hot-line, service office for taxation and citizen letters. The activities such as online interview and interview in TV and broadcast are also highly recommended. The job of increasing the distinction in publicity highlight is important. Apart from the common publicity of tax revenue preferences’ content, condition, management, procedure and way of declaration, it is also essential to explore and collect the typical cases of tax revenue preferences from both sides of taxation, report the latest progress of the implementation of tax revenue preferences in different areas, point out the innovative work methods employed in the tax authority and reflect what the taxpayers have thought, heard and felt about these preferential policies. Only in this way can we enhance the motivation of taxpayers to participate in these preferential policies. The job of combining the problem solution system with 12366 hot-line intimately is indispensable. The details of all sorts of regulation and preferential policies of value added tax, sales tax and business income tax for small and micro enterprises shall be added to the knowledge bank of 12366 hot-line. Furthermore, the contents of response from the customer service staff of 12366 hot-line shall be standardized in order to ensure the accuracy and authority in terms of the preferential policies. Last but not least, it is important to establish a special line for the complaints about the implementation of preferences for small and micro enterprises. The problems reflected in the special line of 12366 hot-line shall be resolved properly in the next 3 working days since the emergence of the issues.
ⅱ. The preferences of tax revenue for small and micro enterprises shall be provided through the means of information technology. It is necessary to meet the needs of elevating the starting point of value added tax and sales tax, adjust the tax declaration form and its instructions and upgrade the related software. In regard to the business income tax, the tax authority should clarify the obligation, optimize the procedure, line up the resources, adjust the declaration software and information system of business income tax, increase the functions such as the notification, alarming and facilitation to the tax declaration and the tracking service for the enterprises who fail enjoying the tax revenue preferences in time. Lastly, the tax authority should take the responsibility of conducting the investigation and analysis of the real situation of tax revenue preferences for small and micro enterprises with the rule of facts.
ⅲ. It is necessary to provide guarantee of the implementation of preferential policies for small and micro enterprises by resorting to the methods of supervision and performance examination. The removal of last barriers is the key to the implementation of preferential policies for small and micro enterprises. Since doing useless work or doing nothing at all are both considered as corruption, it is essential to enhance the executive ability of local tax authority by introducing the methods of supervision and performance examination.The higher level of tax authority, based on the reality of the implementation of preferential policies for small and micro enterprises, should control the working progress and make the checkpoint accurately. Moreover, they should initiate the supervision work specifically to the target areas and the areas with less preferences. Lastly, it is obligatory to criticize the departments who have poor performances in ideology, working attitude, responsibility and implementation and ask them to rectify.