Shenjiang Tax Law Express (September 2022)

In the golden autumn of September, the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the National Development and Reform Commission and other departments issued a number of tax regulations and documents, involving tax deferrals for small, medium and micro enterprises in the manufacturing industry. Payment, postponement of social insurance premiums, tax exemption for new energy vehicles, pre-tax deduction for technological innovation, individual income tax refund to support residents’ housing purchase, list management of tax administrative licensing items, tax policy for debt-offset tax for non-performing debts, and preferential tax policy for enterprise investment in basic research In other aspects, the State Administration of Taxation also issued a one-time pre-tax deduction and a 100% super deduction policy for the purchase of equipment and appliances by high-tech enterprises and an operation guide for the policy of increasing the super deduction ratio of R&D expenses to 100% for other enterprises to help taxpayers enjoy the benefits of science and technology. Innovative pre-tax deduction preferential policies. The tax regulations and policies released by relevant departments in September are fruitful, focused, and influential. They focus on corporate income tax, vehicle purchase tax, personal income tax, tax collection and management, etc., and have an important impact on taxpayers. The author specially releases these to relevant departments. A brief review of tax regulations is provided for the reference of taxpayers.

1. Tax deferment policy

1. Small, medium and micro enterprises in the manufacturing industry will continue to defer the payment of some taxes

Importance ★★★ September 2022 On the 14th, the State Administration of Taxation and the Ministry of Finance issued the "Announcement of the State Administration of Taxation and the Ministry of Finance on Matters Concerning the Continued Delay in the Payment of Partial Taxes by Small, Medium and Micro Enterprises in the Manufacturing Industry" (State Administration of Taxation and the Ministry of Finance Announcement No. 17, 2022). Provisions have been made to continue to defer the payment of some taxes and fees by small, medium and micro enterprises in the manufacturing industry. According to the announcement of the State Administration of Taxation and the Ministry of Finance on matters related to the continuation of the deferral of certain taxes and fees for small, medium and micro enterprises in the manufacturing industry (No. 2, 2022), for November and December 2021, the first quarter and second quarter of 2022 The deferred corporate income tax, personal income tax, domestic value-added tax, domestic consumption tax and surcharged urban maintenance and construction tax, education surcharge, and local education surcharge by small, medium and micro enterprises will be deferred on their deferred taxes starting from September 1, 2022. After the expiration of the postponement period, the payment will be deferred for another 4 months. If the qualified taxes and fees of the above-mentioned enterprises have been paid and deposited into the treasury, they can apply for a tax refund and enjoy the deferred payment policy. Announcement No. 17 will continue to defer the payment of most taxes and fees for small, medium and micro enterprises, effectively easing the financial pressure of enterprises, helping small, medium and micro enterprises to tide over difficulties in the current severe economic environment, and reducing the operating pressure of small, medium and micro enterprises. This policy is very helpful in alleviating the financial pressure on enterprises. Enterprises that have paid relevant taxes and fees can apply for a refund and continue to enjoy the deferred tax payment policy.

2. Further implement the policy of phased postponement of social insurance premiums

Importance ★★★ On September 19, 2022, the General Office of the Ministry of Human Resources and Social Security and the National Development The General Office of the Reform Commission, the General Office of the Ministry of Finance, and the State Administration of Taxation issued the "General Office of the Ministry of Human Resources and Social Security, the General Office of the National Development and Reform Commission, the General Office of the Ministry of Finance, the General Office of the State Administration of Taxation on further improving the policy on phased postponement of social insurance premiums. "Notice on Issues Related to the Implementation Work" (Department of Human Resources and Social Security [2022] No. 50). Compared with Notice No. 202231 issued by the Ministry of Human Resources and Social Security, Notice No. 50 will further postpone the payment of three social insurance premiums in stages starting from September 2022. Expand the implementation scope of the deferred payment policy to cover all small, medium and micro enterprises in the region that are greatly affected by the epidemic and have difficulties in production and operation, individual industrial and commercial households insured on a unit basis, public institutions and various social organizations participating in the basic pension insurance for enterprise employees. . It also allows enterprises to repay deferred social insurance premiums in installments or on a monthly basis before the end of 2023, and tax-free late payment fees. Notice No. 50 requires intensifying the publicity and interpretation of the policy, making a good connection between the deferred payment policy and policies for employee settlement, house purchase, car purchase, and children's schooling qualifications, etc., further optimizing handling services, and ensuring that payers "know everything they need to know" about the policy. , ensure that enterprises can successfully apply for and enjoy the policy, and implement the policy of phased postponement of social insurance premiums.

Notice No. 50 further expands the scope of implementation of the policy of deferring social insurance premiums. The specific scope and intensity of implementation still need to be determined by the local area based on the impact of the epidemic and the status of social insurance funds in the region. Under the current economic situation, deferred payment of social insurance premiums is of great significance to small, medium and micro enterprises, individual industrial and commercial households, public institutions and other organizations to reduce operating pressure.

2. Vehicle purchase tax exemption policy

1. Continue the vehicle purchase tax exemption policy for new energy vehicles

Importance ★★★ September 18, 2022 , the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology issued the "Announcement of the Ministry of Finance, State Administration of Taxation, and the Ministry of Industry and Information Technology on the Continuation of the Policy of Exempting New Energy Vehicles from Vehicle Purchase Tax" (Announcement of the Ministry of Finance, State Administration of Taxation, Ministry of Industry and Information Technology 2022 No. 27 of the year), in order to support the development of the new energy automobile industry and promote automobile consumption, provisions were made to extend the exemption of vehicle purchase tax for new energy vehicles. The announcement stipulates that new energy vehicles with purchase dates between January 1, 2023 and December 31, 2023 will be exempt from vehicle purchase tax. New energy vehicles exempt from vehicle purchase tax are managed through the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" issued by the Ministry of Industry and Information Technology and the State Administration of Taxation. New energy vehicles that meet the tax exemption conditions include pure electric vehicles, plug-in hybrid (including extended-range) vehicles, and fuel cell vehicles listed in the Catalog. The vehicle purchase tax exemption policy for new energy vehicles plays an important role in promoting the sales of new energy vehicles. The vehicle purchase tax rate is 10, and the tax is calculated based on the price of the taxable vehicle. It is a large part of the cost for car buyers. New energy vehicles will continue to be exempted. The vehicle purchase tax will help promote new energy vehicles, promote automobile consumption, stimulate economic development, and achieve environmental governance.

2. Catalog of non-transportation special-purpose vehicles with fixed devices that are exempt from vehicle purchase tax

Importance★★ On September 23, 2022, the State Administration of Taxation, Industry and The Ministry of Information Technology issued the "Announcement of the Ministry of Industry and Information Technology of the State Administration of Taxation on the Release (Sixth Batch)" (Announcement No. 18 of the Ministry of Industry and Information Technology of the State Administration of Taxation 2022), and issued the "Announcement of the Ministry of Industry and Information Technology of the State Administration of Taxation on the Issuance of Vehicle Purchase Tax" Catalog of non-transportation special operation vehicles with fixed devices (sixth batch). The corresponding non-transportation special operation vehicles listed in this catalog will be exempt from vehicle purchase tax when purchased.

3. Preferential corporate income tax policies

1. Increase support for pre-tax deductions for technological innovation

Importance ★★★★ September 22, 2022 , the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and Technology issued the "Announcement of the Ministry of Finance, State Administration of Taxation, and Ministry of Science and Technology on Increasing Pre-tax Deductions to Support Scientific and Technological Innovation" (Announcement No. 28, 2022, of the Ministry of Finance, State Administration of Taxation, Science and Technology Department), in order to support scientific and technological innovation , increasing the intensity of pre-deductions for corporate equipment purchases, R&D expense taxes and other items. On September 27, 2022, the State Administration of Taxation issued the "Operation Guidelines for the One-time Pre-tax Pre-tax Deduction and 100 Super Deduction Policy for the Purchase of Equipment and Appliances by High-tech Enterprises" and the "Policy Operation Guidelines for Raising the Super Deduction Ratio of R&D Expenses to 100% for Other Enterprises" Guidelines" to facilitate relevant enterprises to handle and declare and enjoy the tax policy preferences stipulated in Announcement No. 28. The applicable period of Announcement No. 28 is from October 1, 2022 to December 31, 2022. It is applicable to high-tech enterprises and enterprises with the current applicable pre-tax super deduction ratio of 75 for R&D expenses. High-tech enterprises refer to enterprises with high-tech enterprise qualifications in the fourth quarter of 2022. New equipment and appliances purchased within the period specified in Announcement No. 28 are allowed to be deducted in full in one lump sum in the current year when calculating taxable income. And allow for super deductions before tax. Equipment and appliances refer to fixed assets other than houses and buildings. The announcement did not limit the amount of fixed assets purchased.

The enterprises currently applicable to the super deduction ratio of 75 for R&D expenses refer to negative list industries such as tobacco manufacturing, accommodation and catering industry, wholesale and retail industry, real estate industry, leasing and business services industry, entertainment industry, as well as manufacturing, technology-based industries, etc. For enterprises other than small and medium-sized enterprises, the super deduction ratio for R&D expenses is 75%. The announcement allows companies to increase the pre-tax super deduction ratio of R&D expenses during the specified period from 75% to 100%. For the additional deduction of R&D expenses in the fourth quarter, the enterprise can choose to calculate them based on the actual number incurred or multiply the actual R&D expenses incurred throughout the year by the number of operating months after October 1, 2022 to account for its actual operating months in 2022. Proportional calculation. If the company goes out of business before October 1, 2022, the research and development expenses that the company can deduct before tax will be higher. The provisions of Announcement No. 28 mainly target the purchase of equipment and instruments by high-tech enterprises and the R&D expenses of other enterprises that are subject to a 75% pre-tax super deduction for R&D expenses. The main purpose is to support the innovative development of high-tech enterprises and promote enterprise equipment updates and technology upgrades. The characteristic is that the policy is applicable for a short period, only in the fourth quarter of 2022. It is unknown whether the policy will continue after expiration. Therefore, enterprises must respond quickly to this tax policy. Relevant enterprises should seize the opportunity, plan carefully, and fully enjoy the tax policy benefits. Therefore, in order to effectively enjoy the corporate income tax policy benefits provided by Announcement No. 28, high-tech enterprises should advance the purchase plan of large-scale equipment and appliances to before December 31, 2022, in order to fully enjoy the tax policy benefits and legally reduce the corporate tax burden. . Other companies that are eligible for the 75% pre-tax super deduction for R&D expenses can increase their investment in R&D expenses in the fourth quarter of 2022 based on the company's operating conditions, make full use of the preferential tax policies, and reduce the company's tax burden. High-tech enterprises and other enterprises that are eligible for the 75% pre-tax super deduction for R&D expenses, when enjoying the policy preferences stipulated in Announcement No. 28, can enjoy them in accordance with the method of "self-judgement, declaration and enjoyment, and retaining relevant information for future reference", and in accordance with the provisions of the State Administration of Taxation. The issued operation guide carries out specific operations to reduce the tax risk of enterprises.

2. Tax preferential policies for enterprises to invest in basic research

Importance ★★★★ On September 30, 2022, the Ministry of Finance and the State Administration of Taxation issued the "Regulations on Enterprises by the Ministry of Finance and the State Administration of Taxation" Announcement on Tax Preferential Policies for Investment in Basic Research (Announcement No. 32 of the Ministry of Finance and the State Administration of Taxation, 2022), announced the preferential tax policy for enterprises to invest in basic research. Announcement No. 32 stipulates that expenditures contributed by enterprises to non-profit scientific and technological research and development institutions, universities and government natural science funds for basic research can be deducted before tax based on the actual amount incurred when calculating taxable income, and can be deducted before tax. An additional deduction of 100 is made before tax. For non-profit scientific research institutions and universities that receive basic research funds from enterprises, individuals and other organizations, this part of the income is exempt from corporate income tax. The provisions of Announcement No. 32 establish my country’s tax preferential system for basic research investment, including full pre-tax deduction and 100 super deduction for basic research expenditures invested by enterprises in qualified social institutions, as well as non-profit scientific research institutions, higher education institutions, etc. Tax exemption on funding income received by the school for basic research. Announcement No. 28 does not specify the duration of this policy, which will become an important part of my country’s preferential corporate income tax policies. Basic research as referred to in this policy refers to activities that elaborate and test various hypotheses, principles and laws by analyzing the characteristics, structure and interrelationships of things. Enterprises should sign relevant agreements or contracts when investing in basic research, and keep relevant information on investment for future reference. It is worth noting that the basic research investments made by enterprises to non-profit scientific and technological research and development institutions, universities, and government natural science funds are not necessarily in the nature of public welfare charitable donations. Enterprises can stipulate in relevant agreements that they will not receive any benefits from basic research. The ownership and income distribution of intellectual property rights such as patents and technical secrets obtained by utilizing the knowledge, as well as the participation of enterprise personnel in basic research activities and other matters.

By cooperating with non-profit scientific and technological research and development institutions and universities, enterprises can not only improve their own R&D capabilities, shape the social image of the enterprise, and achieve good social and economic benefits.

IV. Personal income tax policy to support residents’ exchange for housing

Importance ★★★★ On September 30, 2022, the Ministry of Finance and the State Administration of Taxation issued the "Regulations on Supporting the Support of Residents by the Ministry of Finance and the State Administration of Taxation" Announcement of the State Administration of Taxation on Individual Income Tax Policies for Residents to Exchange for Housing" (Announcement No. 30 of the Ministry of Finance and the State Administration of Taxation in 2022). On the same day, the State Administration of Taxation issued the "Announcement of the State Administration of Taxation on Collection and Administration Matters on Individual Income Tax Policies to Support Residents to Exchange for Housing" (State Administration of Taxation) The State Administration of Taxation Announcement No. 21 of 2022) announced the tax policies and related collection and management matters of personal income tax that support residents’ exchange for housing. Announcement No. 30 stipulates that between October 1, 2022 and December 31, 2023, taxpayers who sell their free homes and repurchase their homes in the same city within 1 year after the sale of their current home can apply for a refund of their sold property in accordance with regulations. Personal income tax on current residence. Announcement No. 30 can be seen as a stimulus tool for the urban real estate market to activate the increasingly sluggish real estate market, which will help urban residents replace their existing houses, which is undoubtedly good for families with replacement plans. The policy applies to residents replacing newly purchased houses or second-hand houses. The policy does not specify the applicable groups and the number of times to enjoy the policy, which has yet to be clarified in an orderly operation. In practice, second-hand housing transaction contracts often stipulate that transaction taxes and fees will be borne by the buyer, while the seller is the taxpayer of personal income tax on second-hand housing transactions. This kind of agreement results in the separation of the actual payer and the taxpayer. In second-hand housing transactions, Yin and Yang contracts are often used to avoid taxes, and both parties to the transaction are exposed to tax risks. With the promulgation of Public Notice No. 30, both parties who enter into a second-hand housing transaction contract after October 1, 2022 should consider the tax refund impact of this policy into the negotiation of second-hand housing transactions and make a clear agreement on the tax responsibilities of both parties. to avoid subsequent contract disputes and tax risks.

V. Taxation policy for non-performing debts of banking financial institutions and financial asset management companies to be repaid in kind

Importance★★★ September 30, 2022, Ministry of Finance and State Administration of Taxation The Ministry of Finance and the State Administration of Taxation issued the “Announcement on Tax Policies Concerning the Settlement of Bad Debts of Banking Financial Institutions and Financial Asset Management Companies in Kind” (Announcement No. 31, 2022, of the Ministry of Finance and the State Administration of Taxation), which regulates banking financial institutions and financial asset management companies. The company’s tax policy for disposing of non-performing debts was announced. Announcement No. 31 is a preferential tax policy for banking financial institutions and financial asset management companies to dispose of non-performing debt. In terms of value-added tax, general taxpayers in banking financial institutions and financial asset management companies who dispose of debt-retired real estate can choose to use all the acquired The sales price is deducted from the price and extra-price expenses to obtain the debt-foreclosed real estate, and the value-added tax shall be calculated and paid at the 9 tax rate. A special VAT invoice shall not be issued to the purchaser for the portion of the debt-foreclosed real estate. In terms of stamp duty, stamp duty is exempted from contracts, property rights transfer documents and business account books involved in the process of receiving and disposing of foreclosed assets by banking financial institutions and financial asset management companies. In terms of deed tax, banking financial institutions and financial asset management companies are exempt from deed tax when they receive foreclosed assets. In terms of real estate and urban land use tax, various localities, based on local conditions, reduce or reduce real estate tax and urban land use tax on debt-retired real estate held by banking financial institutions and financial asset management companies. The implementation period of Announcement No. 31 is from August 1, 2022 to July 31, 2023. Taxes that have been collected into the treasury before the announcement and should be exempted or reduced according to regulations can be reduced from the tax payable by the taxpayer in the future or the tax can be refunded to the treasury. The implementation period of this policy is one year. It can be seen that it is a short-term preferential tax policy to support banking financial institutions and financial asset management companies in disposing of non-performing debts. Whether this policy will continue to be implemented in the future, the author believes, will depend on the subsequent development of our country. Economic conditions, such as the continued growth of social non-performing debt, do not rule out the possibility of extending the implementation period of this policy.

6. Comprehensive implementation of the list management of tax administrative licensing matters

1. Comprehensive implementation of the list management of tax administrative licensing matters On September 28, 2022, the State Administration of Taxation issued the "State Administration of Taxation Announcement on the Comprehensive Implementation of the List Management of Tax Administrative Licensing Items" (State Administration of Taxation Announcement No. 19, 2022), Announcement on the Comprehensive Implementation of the Management of the List of Tax Administrative Licensing Matters. Announcement No. 19 stipulates that the State Administration of Taxation will uniformly prepare and publish the tax administrative licensing liquidation (hereinafter referred to as the list) that is uniformly implemented across the country and incorporate it into the national administrative licensing management system. Provincial and lower-provincial tax authorities are not allowed to implement tax administrative licensing outside the list. In 2022, the State Administration of Taxation issued the "List of Tax Administrative Licensing Matters (2022 Edition)", which compiled one tax administrative licensing matter "Approval of the Maximum Invoicing Limit of the Value-Added Tax Anti-Counterfeiting Tax Control System". In the future, the State Administration of Taxation will follow the prescribed procedures to dynamically adjust the list in a timely manner and do a good job in connecting the relevant lists. Regarding the implementation of the list, the announcement requires that tax administrative licensing be strictly implemented in accordance with the list, scientifically formulate implementation standards for administrative licensing, implement tax administrative licensing in accordance with laws and regulations, and seriously investigate and rectify disguised licensing. The announcement clarifies the regulatory entities for tax administrative licensing matters and requires strengthening the supervision of the entire chain before, during, and after the event. And strengthen the guarantee of the implementation of the list, explore the diversified application of the list, and enhance the sense of gain and satisfaction of taxpayers and payers. The implementation of the list management of tax administrative licensing items will help reduce tax administrative licensing, facilitate taxpayers and payers, and unify tax administrative standards. It is an important measure in my country's tax collection and management reform.

2. Optimizing taxpayers’ deferred payment of taxes and other matters On September 28, 2022, the State Administration of Taxation issued the “Announcement of the State Administration of Taxation on Optimizing the Management Methods of Taxpayers’ Deferred Payment of Taxes and Other Tax Matters” (State Administration of Taxation Announcement No. 20 of 2022), it was decided to further simplify and optimize the “approval of taxpayers’ deferred tax payment”, “approval of taxpayers’ deferred declaration”, “approval of taxpayers’ change of tax quota” and “approval of actual adoption of tax payment quotas”. Procedures for handling the five matters of "approval of corporate income tax prepayment methods other than profit prepayment" and "determination of invoice printing enterprises". According to the "Announcement of the State Administration of Taxation on the Comprehensive Implementation of the List Management of Tax Administrative Licensing Matters" (State Administration of Taxation Announcement No. 19 of 2022), the above five matters will no longer be managed as tax administrative licensing matters and will be managed in accordance with matters related to administrative collection. and simplified the application procedures. The announcement simplifies the acceptance process of the above matters, shortening the acceptance process from 5 working days to 3 working days, simplifying the processing procedures, reducing the submission of materials, and implementing the entire online process. The announcement stipulates that the name of "Enterprise Printing Invoice Approval" will be adjusted to "Determination of Invoice Printing Enterprise" and shall be managed in accordance with government procurement matters.

Summary: The tax regulations released in September focus on support policies such as tax reduction and exemption, deferment of social security fees, corporate income tax policies that support technological innovation and investment in basic research, and individual income tax policies that support residents’ purchase of housing. Support banking financial institutions and financial asset management companies in handling tax policies for non-performing debts and implementing tax administrative licensing list management. Since September, my country's national economy has developed more than half way. Affected by the COVID-19 epidemic, various industries have encountered greater operating difficulties. Under the deployment of the Party Central Committee and the State Council, the intensive introduction of various tax support policies is conducive to stabilizing the economic market. , stimulate market vitality. Focus on the implementation of various supportive tax policies, increase support for preferential tax policies, encourage enterprises to invest in technological innovation and basic research, further optimize the business environment, unify tax administrative standards, and improve taxpayers' satisfaction with tax payment. . The various tax policies introduced this month are focused and rich in content. In-depth understanding and application of these policies are of great significance for taxpayers to legally reduce their tax burdens. Relevant taxpayers should carefully study the tax policies related to them, make decisions promptly, and plan carefully to ensure that they can fully enjoy the policy dividends.

It can be seen from the new tax regulations introduced in September: 1. Small, medium and micro enterprises currently generally enjoy the policy of deferred payment of taxes and social security fees. If enterprises do not enjoy the relevant deferred payment policy of taxes and fees, they can refer to the above policies. Research whether you can enjoy the tax and fee deferral policy to alleviate operating pressure. 2. Seize the time window of tax policies. The tax policy for high-tech enterprises that purchase equipment and appliances with pre-tax deductions and other applicable 75% pre-tax super deductions for R&D expenses has a clear applicable period, which requires relevant enterprises to Only by paying close attention to the issuance of tax policies, making careful planning and making quick decisions can we ensure that enterprises fully enjoy the policy dividends and reduce their tax burden legally and in compliance with regulations. 3. The tax preferential policy for enterprise investment in basic research is an important corporate income tax preferential system and will occupy an important position in the corporate income tax system. Relying on science and technology for productivity is an important direction for my country's future industrial upgrading and economic development. How to give full play to the role of preferential tax policies for enterprises to invest in basic research is worthy of in-depth study by the majority of enterprises, and in future practice, we should explore ways for enterprises and scientific research institutions, New models of cooperation among higher education institutions. 4. The personal income tax refund policy for residents purchasing houses has strong tax incentives and a limited implementation period. It will have an important impact on the housing transactions of taxpayers who are considering house replacement in the near future, and will create new problems in the tax burden in second-hand housing transactions. According to the changes, residents with house replacement plans should seize the time window of the policy and complete the house replacement operation during the implementation period of the policy to enjoy the policy dividends and reduce the cost of house replacement. The above is the author’s review of the tax regulations issued by the Ministry of Finance, the State Administration of Taxation and other departments in September 2022. Taxation