State Council: Producer services can be reduced by up to 15% income tax

Postdate: 2016-11-08

China's R & D design enterprises will usher in a period of rapid development.


According to the State Council on accelerating the development of producer services on August 6 to promote industrial restructuring and upgrading of guidance, R & D design, testing and certification, energy saving and environmental protection and other science and technology, innovative producer services enterprises can apply for certification For high-tech enterprises, enjoy a 15% preferential corporate income tax rate.


Click here to see some of these industries, corporate income tax rate is expected to 25% lower than the current corporate tax rate by 10 percentage points.


R & D and design is the productive service industry which serves many sectors such as industry and agriculture. It is a strategic high ground of global industrial competition, which is characterized by strong professionalism, active innovation, high industrial integration and significant driving effect.


At present, the gap between China and the developed countries is large.


To this end, the above-mentioned guidance will be taken to reduce the burden and relaxation and other measures.


Such as the next step to liberalize the market access of the producer services sector, study the timely expansion of producer services, export tax rebate service product range policy to speed up the implementation of producer services, electricity, water, gas and industrial price.


In this regard, the National Development and Reform Commission Deputy Director of Industrial Coordination Xia Nong pointed out that the service sector, including producer services, including its own development characteristics, such as light assets, mortgages can be less physical assets; there are features of knowledge-intensive , Once there is a relatively good development environment, will show a burst of growth.


"Strengthening the supply of productive services to promote China's industrial value chain continue to high-end development, and promote China's economic upgrading quality and efficiency." He said at the August 6 press conference.


In recent years, China's service industry has achieved rapid development. For example, the proportion of value-added services in China for the first time in 2013 exceeded the secondary industry, employment is the biggest subject.


However, China accounted for less than 50% of the service industry, with the general development of developed countries there are 10%, 20% of the distance. The gap in producer services is even greater. Although China is the largest manufacturing country, but not a strong country.


Developed countries rely on the leading edge of producer services, such as R & D, business services, marketing and so on, to dominate global production networks and product value chains. China's secondary industry is still focused on the manufacturing sector, due to underdeveloped producer services in the global industrial chain division of labor system, is still in the low-end.


To this end, the next step as soon as possible to expand sales tax VAT pilot to the service industry in the field. R & D design, testing and certification, energy-saving environmental protection and other science and technology, innovative producer services enterprises, may apply for high-tech enterprises, enjoy 15% preferential corporate income tax rate. Study the timely expansion of producer services, export tax rebate service product range, the development of product tax rebate directory and specific management practices.


In this regard, the Chinese Academy of Social Sciences Institute of Finance and Economics Assistant President Xia Jie long pointed out that this will certainly help reduce the operating costs of service enterprises, in the long run for the role of the service industry is enormous.


In his view, although not all energy-saving environmental protection and research and development are high-tech enterprises, but some emphasis on scientific and technological content and innovation need to be identified as high-tech enterprises, is conducive to reducing burdens.


In his view, the expansion of the sales tax VAT pilot to the whole field of service industry is significant, reducing the duplication of services in the field of taxation, reducing the flow of transaction costs, promote inter-industry or intra-enterprise division of labor and transactions, thus encouraging The manufacturing industry stripping off non-core business, increase the effective supply of service industry, and then promote the development of producer services.


21st Century Business Herald was informed that the country for the producer services there are still very large restrictions. Such as accounting and auditing are not fully open to foreign investment, the need to cooperate with the domestic business before they can.


The implementation of part of the state business tax reform of value-added tax, the producer services sector tax burden is not uniform. Such as logistics storage and transport links of different tax rates, respectively 6%, 11%. The tax rate for general taxpayers such as technical consultation, information technology service industry and design industry is 6%. But there are also 17% VAT rate, such as energy saving and environmental protection. Such as human resources services are still the implementation of business tax, tax rate of 5%.


In addition, most people think that the most expensive industrial electricity prices, it is not true, because many industries have their own electricity, direct purchase of electricity or government subsidies, the lowest per kilowatt only 3 hair, even lower than the residential electricity prices. And usually, in many parts of the commercial price is actually more expensive than the industrial price.