What impact will tax cuts and burden reduction have on enterprises?

The impact of tax cuts and burden reduction on enterprises:

1. Tax cuts and fee reductions will help reduce the burden on enterprises and boost their confidence;

2. It is conducive to improving the income distribution pattern and improving the tax structure;

3. It is conducive to promoting the healthy development of the real economy and getting out of the economic downturn;

4. It is conducive to stimulating market vitality and promoting the economy. High quality development. This unprecedented large-scale tax reduction and fee reduction can create a better development environment for enterprises and play a positive role in promoting the development of manufacturing, technology enterprises, small and micro enterprises, etc.

Extended information

The business tax to value-added tax reform has become a "catalyst" to transform and enhance traditional driving forces and cultivate and strengthen new driving forces. After the tax-to-VAT reform, the construction industry actively explores prefabricated and factory-based models; the real estate industry divests construction, gardening, and property management to implement specialization and industrialization; the financial industry extends to modern financial services such as asset management and financial products, and the catering industry and other services The professional outsourcing industry has developed rapidly and has a strong willingness to innovate.

Replacing business tax with value-added tax has become a typical lever for leveraging fiscal and taxation reforms. Comprehensively promoting the business tax-to-VAT reform has optimized the tax structure, promoted professional division of labor, and cultivated and strengthened new momentum. This has attracted professional recognition from international organizations such as the Organization for Economic Development and Cooperation (OECD): the business tax-to-VAT reform has put China's value-added tax system at a The world's leading position is a milestone in China's economic reform process.

From May 1, 2016, the value-added tax paid by enterprises in all industries will be included in the scope of sharing between the central and local governments, with the central and local governments each sharing 50%. The transition plan ensures that the existing financial resources of local governments remain unchanged, and the increase in revenue centralized by the central government is distributed to local governments through balanced transfer payments, mainly used to increase support for the central and western regions. ?

In August 2016, the State Council issued the "Guiding Opinions on Promoting the Reform of the Division of Fiscal Powers and Expenditure Responsibilities between the Central and Local Governments". This is the first time that the State Council has systematically proposed to promote the division of fiscal powers and expenditure responsibilities. An important document on the reform of the fiscal and taxation system. This reform will moderately strengthen the central government’s financial powers, ensure that local governments perform their financial powers, and reduce and standardize the shared financial powers of the central and local governments.

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Baidu Encyclopedia - Tax cuts and fee reductions add momentum to the economy

Baidu Encyclopedia - Tax cuts and fee reductions