Manufacturing is the foundation of the real economy. The executive meeting of The State Council held on the 13th decided to further extend the period of deferred tax payment in the manufacturing industry and strengthen the rescue of enterprises.

The meeting pointed out that the “five taxes and two fees” such as the income tax deferred in the early period for small and medium-sized enterprises and individual industrial and commercial households in the manufacturing industry will be delayed for four months after the expiration of the deadline from September 1, involving a tax delay of 440 billion yuan. At the same time, the new value-added tax credit for the manufacturing industry is claimed and refunded, the average time to the account is compressed to 2 working days, and it is expected that the tax refund for manufacturing enterprises will be 32 billion yuan in the next four months of this year.

Li Xuhong, director of the Institute of Fiscal and Tax Policy and Application of the National Accounting Institute in Beijing, said that the delay in paying taxes is equivalent to the state providing an “interest-free loan” for enterprises, and the policy is equivalent to the extension of the term of “interest-free loan” again, which can effectively reduce the burden of enterprises and “increase oxygen” and better help the high-quality development of market players.

In order to further support the development of micro, small and medium-sized enterprises in the manufacturing industry, the State Administration of Taxation and the Ministry of Finance jointly issued the “Announcement of the Ministry of Finance of the State Administration of Taxation on Matters related to Continuing to Defer payment of some taxes and Fees for micro, small and medium-sized enterprises in the Manufacturing Industry” on the 14th, making it clear that from September 1, 2022, According to the previous relevant announcement, the medium-sized manufacturing enterprises that have enjoyed the delay of payment of taxes and fees by 50% and the small and micro manufacturing enterprises that have delayed payment of taxes and fees by 100% will continue to extend the delay period for 4 months after the expiration of the delay period.

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“Deferred taxes include those for November and December 2021, February, March, April, May, June 2022 (paid monthly) or the fourth quarter of 2021, The corporate income tax, individual income tax, domestic value-added tax, domestic consumption tax, urban maintenance and construction tax, education fee surcharge and local education surcharge that have been deferred according to regulations in the first quarter and second quarter of 2022 (quarterly payment) do not include the taxes that are withheld and remitted, collected and remitted and paid when applying to tax authorities for issuing invoices.” The relevant person in charge of the State Taxation Administration said.

For example, taxpayer A belongs to the manufacturing medium, small and micro enterprises stipulated in the previous announcement, and reports to pay the relevant taxes and fees on a monthly basis. The relevant taxes and fees whose period is November 2021 have been suspended in accordance with the provisions in the earlier period, and the suspension period is 9 months. According to the original policy, the payment will be made before the end of the declaration period in September 2022. After the implementation of this policy, the relevant tax payment period in November 2021 will be automatically extended for 4 months, and can be paid together with the tariff payment in December 2022 during the declaration period of January 2023.

The relevant person in charge of the State Administration of Taxation introduced that in order to facilitate taxpayers to enjoy the policy, the tax authorities have optimized and upgraded the information system, and small and medium-sized enterprises in the manufacturing industry have enjoyed the policy of deferment of tax payment in accordance with the provisions, after the expiration of the deferment period, there is no need for taxpayers to operate, and the deferment period is automatically extended for 4 months.