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Tax reduction and cost reduction books: from January to May, the country's cumulative new tax reduction and fee reductions reached 893 billion yuan

Source: State Administration of Taxation Release time: 2019-06-27

According to the latest data from the State Administration of Taxation, from January to May this year, a total of 893 billion yuan of tax reductions and charges were added nationwide, of which 816.8 billion yuan were added to reduce taxes and 76.2 billion yuan were added to reduce social insurance costs. A series of tax reduction and fee reduction policies, such as tax reform, have been concentrated to effectively promote high-quality economic development.

The new tax reduction from January to May mainly consists of three parts: First, the new tax reduction policy introduced in 2019 added 351.1 billion yuan in tax reduction, including the deepening of the value-added tax reform, which added 221.8 billion yuan in tax reduction. Policies and special additional tax deductions for personal income tax increase tax reductions of 91.7 billion yuan; the second is the implementation of the 2019 tax reduction policy for the additional tax reduction of 460.4 billion yuan; the third is the continuation of the tax reduction policy in 2019 after the expiration of 2018 New tax reduction of 5.3 billion yuan.

——The effect of deepening VAT reform is obvious. The deepening of the value-added tax reform has been implemented since April, and the overall net tax reduction of 221.8 billion yuan was achieved in April-May, and all industries achieved tax reductions. Among them, the tax reduction effect of the manufacturing industry is obvious, with a net tax reduction of 97 billion yuan in April-May, ranking first in all industries; the wholesale and retail industry achieved a net tax reduction of 80.8 billion yuan.

——The effect of inclusive tax reduction for small and micro enterprises is good. From January to May, the inclusive policy of small and micro enterprises increased by 66.8 billion yuan in tax reduction. Individual industrial and commercial households and private enterprises were the biggest beneficiaries, accounting for 83.4% of the total tax reduction.

——The benefit of personal income tax reform continued to expand. From January to May, the personal income tax reform added 259.4 billion yuan in tax cuts, and a total of 109 million people earned salaries without having to pay personal income tax.

——The comprehensive effect of tax reduction for encouraging technological innovation and corporate income tax policies has been strengthened. In 2018, the state introduced a number of preferential corporate income tax policies to encourage technological innovation. The tax reductions were more concentrated in the annual settlement of corporate income tax in May 2019. Among them, the policy of increasing the pre-tax deduction ratio for research and development expenses added 87.8 billion yuan in tax reduction, which strongly promoted the implementation of the strategy of accelerating the transformation and upgrading of manufacturing and innovation-driven development.

According to the relevant person in charge of the State Administration of Taxation, this series of data fully shows that in the current complex external environment, tax reduction and fee reduction have played an important role in achieving the "six stability" of China's economy. In the next step, the taxation department will continue to pass through the "last mile" for the implementation of tax and fee reductions to ensure that policies are implemented in detail and help promote the high-quality development of our economy.

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