On Tap: More Reform and Tax Cuts

Two sessions preview: China at the crossroads of another wave of reforms
The "One Belt and One Road" represents for China and the outside world a prime opportunity to build cooperation. The Belt will link China with Europe through Central and Western Asia while the Road will connect China with Southeast Asian countries, Africa and Europe. "It serves more as a roadmap for Chinese investments to go global and for China to forge a global partnership network." Zhao Minghao, a research fellow at the Charhar Institute, a Chinese foreign-policy think tank, told the Global Times.

The "One Belt and One Road" signals a recalibration of both China's internal and external policies. It aims to propel an open economic system within the country while further integrating China into the world economy and deepening cooperation with the outside world, especially in terms of building infrastructure and other development projects.

Xi announced the creation of a $40 billion Silk Road Fund to support the development of the "One Belt and One Road" on November 8 at a dialogue meeting on strengthening connectivity and improving cooperation in the country's neighborhood. The fund is designed to improve trade and transport links in Asia and was established on December 29. According to a statement by the People's Bank of China on Monday, the Fund is now active, and will "seek investment opportunities and provide monetary services throughout the Belt and Road Initiatives."

China provided $10 billion tax breaks for SMEs
China has expanded preferential tax policies for small companies and reduced their tax burden to boost economic growth and employment, state-run Xinhua news agency reported.

Nearly 80 percent of urban jobs are provided by small companies, which were also the mainstay of China's exports.

Tax breaks for the SMEs amounted 61.2 billion yuan (USD 10 billion) in 2014, the State Administration of Taxation (SAT) said today.

China pledges SME tax breaks to spur growth
The cabinet said it would extend existing tax breaks to small businesses until the end of 2017, as well as lower the threshold for companies that qualify for the preferential treatment.

Tax cuts include a cut in unemployment insurance.
iFeng: 李克强主持召开国务院常务会议:确定进一步减税降费
The meeting decided that, in the pre-state has issued a series of preferential policies on the basis of small and micro enterprises continue to increase innovation and entrepreneurial efforts to reduce costs of tax cuts. First, from January 1, 2015 to December 31, 2017, will enjoy preferential corporate income tax for small and micro businesses range from annual taxable income of less than 100,000 yuan (including 10 million) to expand less than 200,000 yuan (including 20 million), according to the tax rate of 20% corporate income tax, help small businesses grow quickly. Second, real personal income equity, real estate, technology inventions and other non-monetary assets investments from April 1, 2015, would have been the pilot by staging a one-time tax of tax incentives to promote the country, to stimulate private investment in energy individual. The third is the provision of unemployment insurance rate from the current 3 percent unified regulations to 2%, the ratio of specific units and individual contributions from all over in full to consider raising the unemployment insurance benefits, and promote re-employment of the unemployed, the implementation of the unemployment insurance subsidies and other stable post determined on the basis of factors. Preliminary estimates, only the fee reduction measures will reduce the burden on businesses and employees annually than 400 billion yuan.

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