Songming agent bookkeeping: tax cuts, how much the burden of enterprises reduced?

Production and operation costs continue to climb, is currently the important reason why many enterprises are operating difficulties. A bold approach to reduce costs and enhance the competitiveness of high-quality enterprises is of key significance to increasing effective supply and enhancing economic vitality.

The Central Economic Work Conference listed cost reduction as one of the five major tasks of this year's structural reform. Enterprise costs involve all aspects, the need for multi-pronged policy, play a "combination of punches", play a good war of annihilation. Can we increase tax cuts to reduce the burden on enterprises? Enterprise financing rates can be lower? Why does non-tax revenue remain high? How to effectively reduce systemic transaction costs? Starting from this issue, we focus on these enterprise cost "pain points", launched the "enterprise cost how to reduce" series of reports, in-depth understanding of the business situation of enterprises, analyze the composition of enterprise costs, explore the high cost of enterprise crux, and ask the industry and experts to make suggestions!

The report also asked industry insiders and experts to give their advice.

Why is the call for tax cuts the highest?

Plant, insurance, interest and other important costs can not be tax deductible, it is expected that the full rollout of the camp can add nearly 400 billion yuan of tax cuts

"Now online shopping growth momentum is very fast, the logistics market demand is strong, the annual growth in business revenue is more than 20%, but high costs, high tax burden limits the growth of profits, to a certain extent, bound the enterprise development." Chen Rong, finance manager of Shanghai branch of ITOCHU (China) Co.

Chen Rong gave the reporter a calculation, in 2015, the enterprise revenue of 370 million yuan, but the operating costs of up to 230 million yuan, of which real estate leasing costs accounted for 17%, the cost of insurance accounted for 1%, and the actual payment of value-added tax reached 12.56 million yuan. "If real estate and insurance can be included in the conversion, these costs of the enterprise can be offset against the input tax amount, even if calculated according to the implementation of the lowest 6% tax rate, it can also increase the tax credit of 2.5 million yuan, a reduction of nearly 20%, so that the enterprise's value-added tax burden fell to 2.7%, a decline of 0.7 percentage points, the effect of the tax cuts is very obvious. "

Since last year, along with the economic downward pressure to increase, China's real economy generally appeared rising costs, profit decline. Data released by the National Bureau of Statistics show that in the first 11 months of 2015, the total profits realized by industrial enterprises above designated size nationwide fell by 1.9% year-on-year, with the cost per 100 yuan of main business as high as 85.97 yuan, and the profit margin was only 5.57%.

The 2015 Enterprise Burden Survey [KEY_14] Report released by the Small and Medium-sized Enterprises Development Promotion Center of the Ministry of Industry and Information Technology (MIIT) shows that, affected by the downward pressure of the economy, the subjective feelings of enterprises about various burdens and operational difficulties have been enhanced, and the escalating labor costs, the difficulty of financing and financing is expensive, and the burden of taxes and fees is heavy, etc., are the more prominent problems reflected by the enterprises. In the survey of measures to reduce the burden on enterprises, the state to introduce "tax relief" policy of the highest call, reflecting the proportion of enterprises reached 80% of this demand.

The Central Economic Work Conference held at the end of last year once again deployed tax cuts as an important measure to reduce business costs. Experts generally expect that this year's tax cuts will be increased, and the tax reform as an important means of structural tax cuts will be the main event of this year's tax cuts, and will be the largest tax cuts in the reform policy.

Finance Minister Lou Jiwei said recently that this year, the construction industry, real estate industry, financial industry and living services into the scope of the pilot, to achieve the full implementation of the camp to increase.

"The purpose of the conversion is mainly to eliminate the problem of double taxation arising from the separate levying of value-added tax (VAT) and business tax on goods and services." Hu Yijian, director of the Institute for Public **** Policy and Governance at Shanghai University of Finance and Economics, said that the implementation of the tax reform can realize the transformation from "road levy and full tax" to "ring deduction and value-added tax", create a fairer tax environment, and better meet the needs of The new tax system will create a fairer tax environment and better meet the requirements of a refined social division of labor and a market economy.

Since 2012, China has successively implemented the camp conversion in some important industries, and by the first half of 2015, the camp conversion has been implemented in all industries nationwide, except for the construction, real estate, financial and living service industries. From a quantitative point of view, the country into the "camp to increase" pilot taxpayers *** counted 5.09 million, and construction and other reform of the above four major industries will involve nearly 10 million taxpayers, the reform efforts and scale of tax cuts will be more than ever.

From the past experience, the camping reform will bring a significant increase in the scale of tax cuts for every important industry. As of the first half of 2015, BCM has reduced taxes by a total of 484.8 billion yuan, of which 42.6 billion yuan was reduced in 2012, 140.2 billion yuan in 2013, 191.8 billion yuan in 2014, and 110.2 billion yuan in the first half of 2015. The upcoming implementation of the camp transformation of construction, real estate and financial three industries and most of the industry close relationship, many enterprises will have plant, financial aspects of the cost of expenditure, camp transformation of the full implementation of the VAT invoices of these industries will give most of the enterprises to increase the amount of input credits.

"Once the camping change is fully rolled out, industries currently included in the camping change will benefit more, and the cost of enterprises will fall further." Ernst & Young Greater China Indirect Tax Managing Partner Liang Yinle said, for example, that before the construction and real estate industries were included in the Camp Reform Increase, manufacturing enterprises could not make VAT input tax deductions for the purchase of plant, and sales tax in the price of the house would need to be included in the cost. Once the construction and real estate industries are included in the revenue enhancement, the purchase of plant can be used to obtain VAT invoices for input tax credits, the price of the house no longer contains business tax, and the VAT included does not need to be included in the cost of the enterprise.

"According to the current situation projected, if the four new industries camping tax cuts in line with the implementation of the industry, the full expansion will be new tax cuts of nearly 400 billion yuan, camping tax cuts this year, the total tax cuts will reach 600 billion yuan. Of course, the specific amount of tax cuts still depends on the tax cut program." Hu Yijian said.

Can the tax burden on the manufacturing industry be reduced again?

If the tax rate can be reduced, enterprises will have more funds for equipment upgrading. Apply 17% VAT rate of the manufacturing industry should gradually to 11% of the industry closer

Battalion change after the full launch, China will completely bid farewell to the business tax, VAT has become China's largest tax, and VAT rates will also appear 6%, 11%, 13%, 17% several coexisting, in addition to the existence of small taxpayers of 3% of the simple levy rate.

"Simplifying the tax rate will become the next step of the reform direction, now the manufacturing industry tax rate is the highest 17%, therefore, on the basis of the camping change, the manufacturing industry VAT rate still has further downward space." Yang Zhiyong, director of the fiscal research office of the Institute of Financial and Strategic Studies of the Chinese Academy of Social Sciences, said that the central economic work conference proposed to study the reduction of the manufacturing VAT rate, which is the tax reform and the manufacturing industry to reduce the burden of the overall consideration. Therefore, reducing the manufacturing VAT rate should not be understood as just a tax cut for the manufacturing industry, but should be understood as the optimization of the VAT system, which has both the need to solve the high basic VAT rate of the manufacturing industry and the requirement of the simplification and consolidation of the VAT rate. Industries applying the 17 percent tax rate should gradually move closer to those applying 11 percent.

Shandong Jinan Century Innovation Cement Company is a modern cement manufacturing enterprise, with the growth rate of fixed-asset investment continues to decline, the cement industry is facing enormous pressure, the company's profits have declined year by year: 52.58 million yuan in 2013, 28.4 million yuan in 2014, and a loss of 4.21 million yuan in 2015 as of November. High costs, overcapacity and environmental pollution have become the three mountains facing the industry, and the company has repeatedly hoped to improve its efficiency by upgrading its equipment and industrial upgrading, but it suffers from a lack of funds.

"Lowering the tax burden and reducing expenditures will enable the company to have more funds to complete the replacement of production capacity and the renewal of equipment to achieve the ultimate green and efficient production." The company's financial department in charge of the accountant Wu Songfall told reporters that the enterprise has used the purchase of equipment credit enterprise income tax and other ways to promote the replacement of production capacity, the elimination of the existing 2 sets of cement mill, replacement capacity from 350,000 tons to 2.7 million tons, due to the use of all-digital frequency converter device for speed regulation of the fan, saving about 25% -30% of the electrical energy. "If the value-added tax rate for manufacturing can be reduced, companies will have more money to spend on equipment upgrading."

China's traditional manufacturing industry is generally experiencing the plight of rising costs and declining demand, by November 2015, the national industrial producer factory prices (PPI) has been 45 consecutive months of negative year-on-year growth, while from 2003 to 2013, China's manufacturing industry, the average wage growth of three times. In addition, the manufacturing industry is also facing cost pressures in industrial upgrading, energy conservation and environmental protection.

Currently, China's manufacturing industry VAT basic rate of 17%, food, oil, water, gas, coal and other necessities of life applies to the low tax rate of 13%, "In fact, because China's value-added tax has not yet been fully implemented, real estate and other costs have not been included in the scope of the deduction, so the actual burden of the rate higher than the nominal tax rate." Hu Yijian said, in the context of economic restructuring and transformation and upgrading, appropriately reduce the manufacturing VAT rate, can provide valuable funds for enterprises to improve production efficiency, which is important for the implementation of the strategy of manufacturing a strong country and the realization of the "Made in China 2025" goal.

"VAT is an out-of-the-price cost, theoretically, the change in the tax rate has no impact on corporate profits, but in business operations, the actual sales price is generally negotiated and contracted at tax-inclusive prices, the sale of goods and funds also contain taxes, the impact on corporate profits is still very large." Hubei Donglin Garment Co., Ltd. legal representative Zhai Xiangdong told reporters.

How to support supply-side reform?

Government revenues to make way for enterprise burden reduction, increase the deficit to make up for the financial "gap"

"In the past, the positive fiscal policy is more reflected in the financial subsidies and government investment, etc., in the future to engage in the supply-side structural reforms, but more to rely on the policy of tax cuts. " Hu Yijian said that on the supply side, tax is an important variable that affects the cost of supply, and reducing production costs and expanding supply through tax cuts can both stimulate economic growth and alleviate the pressure of price increases to promote stable economic growth.

Hu Yijian said, for China's current macro policy to be stable, industrial policy to be accurate, micro policy to live and other policy objectives, should be the focus of tax policy from demand to supply, mainly through the main structural tax cuts as the main tax policy orientation, to better play the role of tax cuts should be. Accompanied by the economic downward pressure in recent years and the implementation of tax cuts, China's fiscal revenue growth has declined, and many people are concerned about whether there is still room to continue to increase tax cuts? Fiscal revenue and how to ensure?

"Continue to cut taxes, is the implementation of more vigorous positive fiscal policy needs, as long as the choice is appropriate, will not affect the health and stability of the fiscal." Yang Zhiyong said, in the new situation, the central economic work conference put forward by the phased increase in the fiscal deficit rate has a great need, there is a rigidity of fiscal expenditure, there are many expenditures can not be cut, and increase the fiscal deficit rate can provide more space for tax cuts. Considering that the economy will still maintain a certain growth rate, fiscal revenue will also increase accordingly, thus releasing more space for tax cuts, and the space for tax cuts of about 500 billion yuan should be affordable.

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