In order to reduce the cost of entrepreneurial innovation, enhance the development momentum of small and micro enterprises, and promote employment expansion, the State Council executive meeting convened on April 25 decided to increase tax reduction efforts in accordance with the requirements of the Central Economic Work Conference and the “Government Work Report”:
First, the company will enjoy the new purchase of R&D equipment and the maximum value of the equipment unit for a one-off tax deduction for the year, from RMB 1 million to RMB 5 million.
Second, the annual minimum taxable income of small and micro enterprises that will enjoy the preferential policy for the reduction of corporate income tax will be raised from 500,000 yuan to 1 million yuan.
The above two measures are implemented from January 1, 2018 to December 31, 2020.
The third is to cancel the company's entrusted overseas R & D costs can not add the deduction limit.
The fourth is to extend the year-long run-off of losses from high-tech enterprises and technology-based SMEs from 5 to 10 years.
Fifth, the pre-tax deduction limit for employee education funds of general enterprises is unified with the limit of high-tech companies, from 2.5% to 8%.
The above three measures will be implemented from January 1 this year.
Sixth, starting from May 1, the stamp tax levied on the account book of taxpayers set up according to the total amount of paid-in capital and capital reserve will be halved, and the other account books levied on a piece-by-piece basis will be exempted from stamp tax.
Seventhly, the venture capital investment enterprises and angel investors who are currently piloting in the eight comprehensive innovation and reform pilot areas and Suzhou Industrial Park will be invested in the seed period. The technology companies in the initial stage will be promoted to 70% of the investment amount to offset the preferential policies for taxable income. National enterprise income tax, personal income tax related preferential policies will be implemented from January 1 and July 1.
Taking the above seven measures, it is expected that the company will be responsible for reducing taxes by more than 60 billion yuan for the whole year.