State Council: Raise The Threshold Of Value-Added Tax Business Tax For Small And Micro Enterprises

According to the news of the Chinese government network, Premier Wen Jiabao chaired a State Council executive meeting on 12 April to study the financial and fiscal policies and measures to support the development of small and micro enterprises.

The meeting pointed out that small and micro enterprises play an irreplaceable role in promoting economic growth, increasing employment, technological innovation and social harmony and stability. At present, some small and micro enterprises are facing difficulties in operation, financing difficulties and heavy tax burden. We should strengthen financial services and fiscal support. We should increase the support of the real economy that meets the requirements of the state's industrial and environmental policies, and can absorb employment, such as technology, services and processing industries, and guide and help small and micro enterprises. Steady Manage, enhance profitability and develop stamina.

Conference research identified financial support for small micro enterprise Policies and measures for development: (1) increase credit support for small and micro enterprises. The growth of loans to small micro enterprises by banking financial institutions is not less than the average growth rate of all loans. The increment is higher than that of the same period of last year. Commercial banks focus on increasing credit support to small and micro enterprises under a single household credit of less than 5 million yuan. We should strengthen loan supervision and end-user monitoring to ensure the normal production and operation of small and micro enterprises. (two) clean up and correct unreasonable charges for financial services, and effectively reduce the actual cost of enterprise financing. In addition to syndicated loans, commercial banks are prohibited from collecting commitment fees and funds management fees for small micro enterprise loans. Strictly restrict commercial banks from collecting financial advisory fees and consulting fees to small and micro enterprises. (three) broaden the financing channels for small and micro enterprises. We should gradually expand the scale of collection of small and micro enterprises, collective bonds and short-term financing bonds, and actively and steadily develop financing tools such as private equity investment and venture capital investment. We will further promote the construction of the exchange market and the OTC market, and improve the financing environment for small and micro enterprises. We should actively develop small micro enterprises loan guarantee insurance and credit insurance. (four) refine the differentiated supervision policy for small micro enterprises' financial services. For small micro enterprises, the commercial banks with more than a certain percentage of loans and a larger number of customers will relax institutional access restrictions and allow them to build batches of City branches and franchise outlets in batches. For commercial banks to issue financial bonds corresponding to a single small household loans of less than 5 million yuan, in the calculation of deposit to loan ratio can not be included in the scope of assessment. Commercial banks are allowed to consider the small micro enterprise loans with a single household credit of less than 5 million yuan as the risk weight of retail loans and reduce capital occupation. We should appropriately increase the tolerance of small micro enterprises to the bad loan rate. (five) to promote the reform and development of small financial institutions. Strengthen small financial institutions to focus on small micro enterprises, communities, residents and "three rural" market positioning. On the basis of prudent supervision, we should promote the establishment of new rural financial institutions, guide small financial institutions to increase service outlets, and extend institutions to counties and townships within their jurisdiction. (six) promote the healthy development of private lending on the basis of standardized management and risk prevention. Effectively curb the tendency of private lending to usury and crack down on illegal fund-raising, pyramid selling and other illegal activities in accordance with the law. Strict supervision and prohibition of financial practitioners from participating in the public sector To loan 。 Financial support for small and micro enterprises should be carried out in accordance with market principles, reducing administrative intervention and preventing credit risks and moral risks.

The conference research has determined the fiscal and taxation policies and measures to support the development of small and micro enterprises: (1) increase tax support for small and micro enterprises. Raise the threshold of value-added tax and business tax for small and micro enterprises. The enterprise income tax policy will be reduced to half of the small profit enterprises, and extended to the end of 2015. The eligible public service demonstration platform for small and medium enterprises should be included in the preferential tax policy for import and export of technology development products. (two) support financial institutions to strengthen financial services for small and micro enterprises. The stamp duty is exempt from financial institutions' contracts for small micro enterprises within three years. The pre Tax Deduction Policy for the loan loss reserve of small and medium enterprises in financial enterprises was extended to the end of 2013. The policy of reducing the financial and insurance income of eligible rural financial institutions by 3% according to the business tax shall be extended to the end of 2015. (three) expand the scale of special funds for small and medium-sized enterprises, and support indirectly small and micro enterprises by indirect means. We should further clean up and cancel some of the charges related to enterprises.

The meeting called on all regions and departments concerned to support the healthy development of small and micro enterprises as an important task, seriously formulate relevant policies and measures, and earnestly carry out the implementation.

Other matters were also discussed.