Quot;New Economy”: value-added tax transformation on the impact of Chinese companies – value-a

2009 1 1st, Chinese history, the largest single tax cuts tax reform?? VAT reform, and finally across the country began. Challenge facing the global financial crisis, China Enterprises, tax reform, how to seize this opportunity to enhance their development potential

2008 11 5, Chinese Premier Wen Jiabao chaired a State Council executive meeting, the Conference adopted a further expansion of domestic demand, promote stable and rapid economic growth of 10 measures. The ninth measures Is, from January 1, 2009 onwards, the nationwide implementation of the VAT reform?? Allow companies to offset the VAT contained in the newly acquired equipment, while the abolition of the imported equipment and foreign VAT Investment enterprises Purchase VAT refund policy made equipment will be small-scale taxpayers uniform VAT Rate to 3%, to minerals recovered to 17% VAT rate.

As China’s current largest tax, value-added tax reform is of great significance. In 2007, only domestic VAT revenues on more than 1.5 trillion yuan, accounting for 31% of annual tax revenue. The reform of the State Family finances more than 120 billion yuan is expected to be reduced, called single tax reform in our history the biggest tax cuts.

In fact, the value-added tax reform, several years ago would have been explored in the. Deployment of the State Council, July 1, 2004, VAT reform first of all provinces in the Northeast Equipment Manufacturing Industry, petrochemical industry and other sectors of the eight pilot; July 1, 2007, the pilot extended to six provinces in 26 old industrial base in the city’s electricity, mining and other eight industries; July 1, 2008 The experimental range was extended to Union City five eastern Inner Mongolia Autonomous Region and Sichuan Wenchuan earthquake disaster areas.

According to statistics, as of the end of 2007, northeast and central transition into the new equipment in pilot regions Total of 24.4 billion yuan tax items, the cumulative offset amount of unpaid VAT and VAT refund 18.6 billion to businesses. Pilot run smoothly and effectively promoted the pilot areas and equipment renewal and economic development Transformation, but also comprehensively implement VAT reforms accumulated experience.

As a value-added tax reform, a pioneer, what are the three northeast provinces successful experience? “New Economy” interview IRS levy of Heilongjiang Province Management Director Zhang Jianmin.

VAT reform to eliminate double taxation

“New Economy”: from value-added tax reform pilot started in 2004, your capital gains tax reform, the province has conducted more than four years. You think the greatest significance of this reform is?

Zhang Jianmin: VAT reform of the greatest significance is that it will eliminate double taxation, reduce the corporate tax, so as to promote technological progress and enhance their development potential, and raise state-owned enterprises Industry’s competitiveness and ability to resist risks. These are enterprises. In addition, the VAT reform, improve our tax system is also of great significance. The problem speaking more complicated.

“New Economy”: Then please give us spread the knowledge about the value-added tax.

Zhang Jianmin: Good. Principle from the tax, said VAT is commodity production, distribution, labor services, several aspects of the new value or value-added goods levy a turnover tax. The so-called growth Value, the taxpayer in the sale of products or provision of services period of time the income is greater than the purchase of goods and services made the difference when the amount paid, the taxpayer in its business activities in production The additional value created.