Government Work Report Mentions Five “Deferred” Collection of Enterprise-related Taxes and Fees

The report proposed a number of extensions for corporate taxes and rents, focusing on assisting small and medium-sized enterprises, individual industrial and commercial households, increasing tax reduction, intensifying the implementation of macro policies and stabilizing the employment of enterprises.

Premier Li Keqiang made a Government Work Report at the 3rd meeting of the 13th National People’s Congress.

The report proposed a number of extensions for corporate taxes and rents, focusing on assisting small and medium-sized enterprises, individual industrial and commercial households, increasing tax reduction, intensifying the implementation of macro policies and stabilizing the employment of enterprises.

1. The policies introduced early this year that are due to expire by June, 2020 will all be extended till the end of the year.

2. The payment of corporate income taxes by micro and small businesses and selfemployed individuals will be postponed to next year.

3. The policy of reducing electricity prices for general industrial and commercial businesses by 5% will be extended to the end of the year.

4. Rents for state-owned premises will be lowered or exempted, and all other types of property owners are encouraged to also reduce, waive, or defer rent payments, and they will receive policy support from the government in doing so.

5. China will strengthen financial support for stable enterprises.

The policy allowing micro, small, and medium businesses to postpone principal and interest repayments on loans will be further extended till the end of March next year—payments on all-inclusive loans of micro and small businesses eligible for this policy should also be deferred, and other businesses facing financial difficulties can discuss similar terms with their creditors.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/10/government-work-report-mentions-five-deferred-collection-of-enterprise-related-taxes-and-fees/.

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