Premier Li Keqiang presided over an executive meeting of the State Council on March 28 to determine measures to deepen the value-added tax reform and further reduce the tax burden of market players. The meeting pointed out that in the past five years, a total of 2.1 trillion yuan has been reduced in taxes through the implementation of the reform of business tax to value-added tax. According to the deployment of the Party Central Committee and the State Council, in order to further improve the tax system, support the development of the real economy such as manufacturing, small and micro enterprises, and continue to reduce the burden on market players, the meeting decided that starting from May 1, 2018,

First, reduce the value-added tax rate of manufacturing and other industries from 17% to 16%, and reduce the value-added tax rate of transportation, construction, basic telecommunication services and other industries and agricultural products from 11% to 10%. Tax 240 billion yuan.

The second is to unify the standards for small-scale value-added tax taxpayers. Raise the annual sales standard for small-scale taxpayers of industrial enterprises and commercial enterprises from 500,000 yuan and 800,000 yuan to 5 million yuan, and allow enterprises that have been registered as general taxpayers to be re-registered as small-scale taxpayers within a certain period of time , allowing more enterprises to enjoy the preferential taxation at a lower collection rate.

The third is a one-time refund of the input tax that has not been fully deducted within a certain period of time for qualified enterprises in advanced manufacturing industries such as equipment manufacturing, and modern service industries such as R&D and power grid enterprises.

The implementation of the above three measures will reduce the tax burden of market players by more than 400 billion yuan throughout the year, and both domestic and foreign enterprises will benefit equally.