Recently, multiple departments including the National Development and Reform Commission (NDRC) and the State Taxation Administration have issued various preferential tax and fee policies. Today, we have sorted them out one by one for you, please check and claim them according to your situation.

I. Preferential Policies for Social Insurance

On February 18, 2020, the National Development and Reform Commission, together with multiple departments, issued "Notice on Printing and Distributing Several Policies for Promoting the Steady Growth of the Industrial Economy" (Fa Gai Chan Ye 〔2022〕 No. 273). The fiscal, tax and fee policies mentioned in the document include: reducing the social insurance burden on enterprises, continuing to implement the phased policy of reducing the rates of unemployment insurance and work-related injury insurance in 2022.

Fa Gai Chan Ye 〔2022〕 No. 273 continued the 2021 policy of reducing the rates of unemployment insurance and work-related injury insurance in terms of social insurance. Although the contribution ratios of work-related injury insurance and unemployment insurance are not high, the reduction of rates has to a certain extent reduced the burden on enterprises.

II. Preferential Measures for Value-Added Tax (VAT) Policies

The National Development and Reform Commission and other departments issued "Notice on Several Policies for Promoting the Recovery and Development of Hard-Hit Sectors in the Service Industry" (Fa Gai Cai Jin 〔2022〕 No. 271), which stipulates:

1. Continuing the VAT additional deduction policy for the service industry: In 2022, taxpayers in the production and living service industries may continue to deduct 10% and 15% of their current deductible input VAT from their tax payable, respectively.

2. Suspending the prepayment of VAT for railway transportation enterprises for one year in 2022.

3. Exempting VAT on public transportation services such as ferry, public bus passenger transport, subway, urban light rail, taxi, long-distance passenger transport, and shuttle buses in 2022.

4. Suspending the prepayment of VAT for air transportation enterprises for one year in 2022.

III. Preferential Measures for Corporate Income Tax Policies

Fa Gai Chan Ye 〔2022〕 No. 273 mentions in the fiscal, tax and fee policies: Increasing the pre-tax deduction intensity for equipment and appliances purchased by small and medium-sized micro-enterprises. For equipment and appliances newly purchased by small and medium-sized micro-enterprises in 2022 with a unit value of more than 5 million yuan, those with a depreciation period of 3 years may be deducted in full before tax at one time, and those with a depreciation period of 4 years, 5 years, or 10 years may be deducted by half; enterprises may enjoy the preferential policy on a quarterly basis, and losses formed due to insufficient deduction in the current year may be carried forward and deducted in the subsequent 5 tax years in accordance with regulations.

Scope of small and medium-sized micro-enterprises applicable to the policy:

• Information transmission industry, construction industry, leasing and business service industry: Having less than 2,000 employees, or operating income of less than 1 billion yuan, or total assets of less than 1.2 billion yuan
• Real estate development and operation: Having operating income of less than 2 billion yuan or total assets of less than 100 million yuan
• Other industries: Having less than 1,000 employees or operating income of less than 400 million yuan

IV. Preferential Measures for "Six Taxes and Two Surcharges" Policy

Fa Gai Chan Ye 〔2022〕 No. 273 mentions: Expanding the scope of applicable entities for the local preferential policy of reducing and exempting "Six Taxes and Two Surcharges", and increasing the intensity of corporate income tax reduction and exemption for small and micro-profit enterprises.

"Six Taxes and Two Surcharges" refer to: Resource Tax, Urban Maintenance and Construction Tax, Real Estate Tax, Urban Land Use Tax, Stamp Duty, Cultivated Land Occupation Tax, Education Surcharge, and Local Education Surcharge.

According to "Announcement of the Ministry of Finance and the State Taxation Administration on Further Implementing the Policy of Reducing and Exempting 'Six Taxes and Two Surcharges' for Micro and Small Enterprises" (Announcement No. 10 of 2022 of the Ministry of Finance and the State Taxation Administration):

People's governments of provinces, autonomous regions, and municipalities directly under the Central Government may, in accordance with the actual conditions of their respective regions and the needs of macro-control, determine to reduce Resource Tax, Urban Maintenance and Construction Tax, Real Estate Tax, Urban Land Use Tax, Stamp Duty (excluding Securities Trading Stamp Duty), Cultivated Land Occupation Tax, Education Surcharge, and Local Education Surcharge by up to 50% of the tax amount for small-scale VAT taxpayers, small and micro-profit enterprises, and individual industrial and commercial households.

Small-scale VAT taxpayers, small and micro-profit enterprises, and individual industrial and commercial households that have legally enjoyed other preferential policies for Resource Tax, Urban Maintenance and Construction Tax, Real Estate Tax, Urban Land Use Tax, Stamp Duty, Cultivated Land Occupation Tax, Education Surcharge, and Local Education Surcharge may enjoy the preferential policies specified in Article 1 of this Announcement on a superimposed basis.

Implementation period: From January 1, 2022 to December 31, 2024.

Criteria for identifying small and micro-profit enterprises:

• Engaged in industries not restricted or prohibited by the state
• Annual taxable income does not exceed 3 million yuan
• Number of employees does not exceed 300

• Total assets do not exceed 50 million yuan

V. Extending the Tax Deferral Policy for Small and Medium-Sized Manufacturing Enterprises

Fa Gai Chan Ye 〔2022〕 No. 273 clearly stipulates in the policy: Extending the phased tax and fee deferral policy: The policy of deferring the payment of some taxes and fees for small and medium-sized manufacturing enterprises implemented in the fourth quarter of 2021 will be continued for another 6 months. Continue to implement preferential policies such as subsidies for the purchase of new energy vehicles, awards and subsidies for charging facilities, and reduction or exemption of vehicle and vessel tax.

VI. Preferential Tax and Fee Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households

1. Exemption from VAT for eligible small-scale VAT taxpayers

【Eligible Entities】: Small-scale VAT taxpayers

【Preferential Content】: Starting from April 1, 2021, small-scale taxpayers who have VAT taxable sales activities and whose total monthly sales do not exceed 150,000 yuan (or quarterly sales do not exceed 450,000 yuan if the tax period is a quarter) are exempt from VAT.

【Policy Basis】

• "Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policy of Exempting Small-Scale VAT Taxpayers from VAT" (Announcement No. 11 of 2021)
• "Announcement of the State Taxation Administration on Issues Concerning the Administration of VAT Exemption for Small-Scale Taxpayers" (Announcement No. 5 of 2021)

2. Reduction and exemption of corporate income tax for small and micro-profit enterprises

【Eligible Entities】: Small and micro-profit enterprises

【Preferential Content】: From January 1, 2021 to December 31, 2022, for the part of the annual taxable income of small and micro-profit enterprises that does not exceed 1 million yuan, 12.5% of it shall be included in the taxable income, and corporate income tax shall be paid at a tax rate of 20%.

【Policy Basis】

• Article 2 of "Notice of the Ministry of Finance and the State Taxation Administration on Implementing the Preferential Tax Reduction Policies for Micro and Small Enterprises" (Cai Shui 〔2019〕 No. 13)