BEIJING China will implement several preferential tax and fee policies to ease the burdens on market entities, including small companies and individual businesses, according to the State Council executive meeting chaired by Premier Li Qiang on Friday.
As part of long-term institutional arrangements, the policy allows companies with an additional pre-tax deduction ratio of 75 percent for research and development expenses to apply a ratio of 100 percent.
The city land use tax for bulk commodity storage and reducing the employment security fund will be extended until the end of 2027, and will be extended to include the disabled persons' employment security fund.
Temporary policies, such as reductions to corporate income tax on annual taxable income up to 1 million yuan $146,000 for micro and small enterprises and self-employed individuals and reductions to premiums for unemployment insurance and workers' compensation, will be extended until the end of 2024.
The country will not have to implement tariffs on coal imports until the end of 2023.
According to the meeting, preferential policies are expected to ease corporate burdens by more than 480 billion yuan per year.
The work plan was approved by the meeting on the basis of the guiding principles of the central rural work conference and implementing key tasks of the central authorities' first policy statement this year.
The meeting said that all relevant departments and units must shoulder their responsibilities, implement grain production support policies, and ensure that the annual grain output remains above 650 million metric tons in 2023.
More efforts will be made to promote rural revitalization, promote rural industries with local features and create more channels for increasing rural incomes.
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The State Council has 103 critical tasks to do this year in terms of 10 aspects. It emphasized that all departments and units should further implement and refine policy measures, formulate and improve implementation plans and implement them in a down-to- earth manner.
The meeting said it was necessary to conduct in-depth investigations and studies, and to optimize policies in a timely manner.