Education Bureau’s double reduction policy

"Announcement of the Ministry of Finance, State Administration of Taxation and the General Administration of Customs on Relevant Policies for Deepening the Value-Added Tax Reform" Article 7 of the Announcement No. 39 of 2019 of the Ministry of Finance, State Administration of Taxation and the General Administration of Customs: Starting from April 1, 2019 As of December 31, 2021, taxpayers in the production and daily service industries are allowed to deduct an additional 10% of the deductible input tax for the current period to deduct the tax payable (hereinafter referred to as the super tax deduction policy). The “production and daily service taxpayers” mentioned in the announcement refer to taxpayers whose sales from providing postal services, telecommunications services, modern services, and daily life services (hereinafter referred to as the four services) account for more than 50% of the total sales.

The specific scope of the four services shall be implemented in accordance with the "Notes on Sales Services, Intangible Assets, and Real Estate" (Issue No. 36 of Finance and Taxation [2016]).

1. Postal service.

Postal services refer to the business activities of China Post Group Corporation and its affiliated postal enterprises in providing basic postal services such as mail delivery, postal remittance and confidential communications. Including universal postal services, special postal services and other postal services.

2. Telecommunications services.

Telecommunications services refer to the use of various communication network resources such as wired and wireless electromagnetic systems or photoelectric systems to provide voice call services and transmit, transmit, receive or apply electronic data and information such as images and text messages. business activities. Including basic telecommunications services and value-added telecommunications services.

1. Basic telecommunications services.

Basic telecommunications services refer to business activities that use fixed networks, mobile networks, satellites, and the Internet to provide voice call services, as well as business activities that lease or sell network elements such as bandwidth and wavelength.

2. Value-added telecommunications services.

Value-added telecommunications services refer to the use of fixed networks, mobile networks, satellites, Internet, and cable TV networks to provide SMS and MMS services, electronic data and information transmission and application services, Internet access services, etc. Activity.

Satellite TV signal ground transfer services are subject to value-added tax as value-added telecommunications services.

3. Modern services.

Modern services refer to business activities that provide technical and knowledge-based services around manufacturing, cultural industries, modern logistics industries, etc. Including R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, leasing services, authentication consulting services, radio, film and television services, business auxiliary services and other modern services.

1. R&D and technical services, including R&D services, contract energy management services, engineering survey and exploration services, and professional technical services.

(1) R&D services, also called technology development services, refer to business activities that conduct research and experimental development on new technologies, new products, new processes or new materials and their systems.

(2) Contract energy management service refers to an energy-saving service company and an energy-consuming unit agreeing on energy-saving goals in the form of a contract. The energy-saving service company provides necessary services, and the energy-saving unit pays the energy-saving service company for its investment in terms of energy saving results. and its business activities with reasonable remuneration.

(3) Engineering survey and exploration services refer to business activities that conduct on-site investigation of terrain, geological structures, and underground resource reserves before and after mining and engineering construction.

(4) Professional technical services refer to special technical services such as meteorological services, seismic services, ocean services, surveying and mapping services, urban planning, environmental and ecological monitoring services, etc.

2. Information technology services refer to business activities that use computers, communication networks and other technologies to produce, collect, process, process, store, transport, retrieve and utilize information, and provide information services. Including software services, circuit design and testing services, information system services, business process management services and information system value-added services.

(1) Software services refer to business activities that provide software development services, software maintenance services, and software testing services.

(2) Circuit design and testing services refer to business activities that provide integrated circuit and electronic circuit product design, testing and related technical support services.

(3) Information system services refer to the provision of information system integration, network management, website content maintenance, desktop management and maintenance, information system applications, basic information technology management platform integration, information technology infrastructure management, Data center, hosting center, information security services, online anti-virus, virtual hosting and other business activities. Including the network operation services provided by the website to non-owned online games.

(4) Business process management services refer to activities that rely on information technology to provide human resources management, financial and economic management, audit management, tax management, logistics information management, business information management and call center services. .

(5) Information system value-added services refer to additional information technology services provided to users by utilizing information system resources. Including data processing, analysis and integration, database management, data backup, data storage, disaster recovery services, e-commerce platform, etc.

3. Cultural and creative services, including design services, intellectual property services, advertising services and conference and exhibition services.

(1) Design services refer to business activities that convey plans, plans, and ideas through text, language, pictures, sounds, vision, etc. Including industrial design, internal management design, business operation design, supply chain design, styling design, clothing design, environmental design, graphic design, packaging design, animation design, online game design, display design, website design, mechanical design, engineering design, advertising Design, creative planning, text printing, pictures, etc.

(2) Intellectual property services refer to business activities that deal with intellectual property affairs. Including registration, appraisal, evaluation, certification, and retrieval services for patents, trademarks, copyrights, software, and integrated circuit layout designs.

(3) Advertising services refer to the use of books, newspapers, magazines, radio, television, movies, slides, street signs, posters, windows, neon lights, light boxes, the Internet and other forms to provide customers with goods, The business activities of operating service projects, cultural and sports programs, or announcements, statements and other entrusted matters to publicize and provide related services. Including advertising agency and advertising release, broadcast, publicity, display, etc.

(4) Conference and exhibition services refer to business activities that organize or organize various exhibitions and conferences for commodity circulation, promotion, display, economic and trade negotiations, non-governmental exchanges, corporate communication, international exchanges, etc.

4. Logistics auxiliary services, including aviation services, port terminal services, freight and passenger terminal services, salvage and rescue services, loading and unloading services, warehousing services and collection and delivery services.

(1) Aviation services, including aviation ground services and general aviation services.

(2) Port terminal services refer to port ship dispatching services, ship communication services, channel management services, channel dredging services, lighthouse management services, navigation mark management services, ship piloting services, tally services, system Business activities that provide services to ships include unmooring services, berthing and moving services, maritime ship oil spill removal services, water traffic management services, professional ship cleaning and disinfection testing services, and ship oil leakage prevention services. The port facility security fees charged by the port facility operator are subject to value-added tax based on port terminal services.

(3) Freight and passenger terminal services refer to freight and passenger terminals providing cargo stowage services, transportation organization services, transfer services, vehicle dispatching services, ticketing services, cargo packaging and sorting, and railway lines Business activities include usage services, additional railway passenger car services, railway baggage train dispatch services, railway arrival and transfer services, railway vehicle orchestration services, vehicle mounting services, railway contact network services, railway locomotive traction services and other business activities.

(4) Salvage and rescue services refer to business activities that provide ship personnel rescue, ship property rescue, water rescue and shipwreck and sunken object salvage services.

(5) Loading, unloading and handling services refer to the business of loading, unloading and moving goods between means of transportation, between loading and unloading sites, or between means of transportation and loading and unloading sites using loading and unloading handling tools or human or animal power. Activity.

(6) Warehousing services refer to the business activities of using warehouses, freight yards or other places to store and keep goods on behalf of customers.

(7) Collection and delivery services refer to business activities that accept the entrustment of the sender and complete the collection, sorting and delivery of letters and parcels within the promised time limit.

Collection service refers to the business activity of collecting letters and packages from senders and delivering them to the distribution center in the same city as the service provider.

Sorting service refers to the business activities of the service provider in classifying and distributing letters and parcels in its distribution center.

Delivery service refers to the business activity in which the service provider delivers letters and packages from its distribution center to recipients in the same city.

5. Leasing services, including financial leasing services and operating leasing services.

(1) Financial leasing services refer to leasing activities with the characteristics of financing and ownership transfer.

That is, the lessor purchases tangible movable or real estate and leases it to the lessee according to the specifications, models, performance and other conditions required by the lessee. During the contract period, the ownership of the leased property belongs to the lessor, and the lessee only has the right to use it. The rent is paid at the end of the contract. Afterwards, the lessee has the right to purchase the leased property according to the residual value to take ownership of it. Regardless of whether the lessor sells the leased property to the lessee, it is a finance lease.

According to different subject matter, financial leasing services can be divided into tangible movable property financial leasing services and real estate financial leasing services.

Financing sale and leaseback does not pay value-added tax according to this tax item.