On March 5, Premier Li Keqiang of the State Council issued a "Report on the Work of the Government", clarifying the overall requirements and policy orientations for economic and social development in 2022, which released a lot of tax related information. Here, we join readers in adopting a government work report and looking forward to fiscal and tax policies in 2022.

1、 Using fiscal and tax policies to promote the stability and expansion of enterprises

Original text: Strengthen the employment priority policy. Vigorously expand employment channels, focus on stabilizing employment through stabilizing market entities, and enhance the role of entrepreneurship in driving employment. Fiscal, tax, and financial policies should be implemented in a priority manner around employment, and support for stabilizing and expanding the number of employees in enterprises should be strengthened. Various special employment promotion policies should be strengthened and optimized, and unreasonable restrictions on employment and entrepreneurship should be resolutely eliminated. All localities should make every effort to stabilize and expand employment.

Outlook: The government has determined the path of "stabilizing employment" through "stabilizing market entities", so using fiscal and tax policies to "stabilize market entities" is nothing more than reducing tax burden or financial support. The editor believes that the government may issue policy documents on flexible employment for enterprises, or provide financial support to enterprises that expand employment on a large scale.

2、 Increase tax support for small and micro enterprises and individual businesses

Original text: Implement a new combined tax support policy. Adhere to the combination of phased measures and institutional arrangements, and promote both tax reduction and tax refund. On the one hand, we will continue to implement the tax and fee reduction policies that support the manufacturing industry, small and micro enterprises, and individual businesses, and increase the scope of tax and fee reduction and expand the scope of application. Small scale taxpayers are exempt from value-added tax on a periodic basis. For small and micro enterprises with an annual taxable income of between 1 million yuan and 3 million yuan, corporate income tax will be levied at a further reduction of half. Local governments should also take effective measures to reduce taxes and fees in accordance with the actual situation, so as to stabilize market expectations.

Outlook: The Ministry of Finance and the State Administration of Taxation will issue specific documents to continue the policy of tax reduction and fee reduction, while clarifying that "small-scale taxpayers will be exempt from value-added tax periodically. For the portion of the annual taxable income of small and micro enterprises ranging from 1 million yuan to 3 million yuan, corporate income tax will be reduced by half.".

3、 Vigorously improve the value-added tax rebate system

In a comprehensive consideration of providing cash flow support to enterprises, promoting consumption and investment, and vigorously improving the value-added tax deduction and refund system, a large-scale tax refund will be implemented for the tax deduction and refund this year. Priority will be given to small and micro enterprises, and the stock tax credits for small and micro enterprises will be refunded in full before the end of June. The incremental tax credits will be refunded in full. We will focus on supporting the manufacturing industry and comprehensively address the issue of tax rebates for manufacturing, scientific research and technical services, ecological and environmental protection, electricity and gas, transportation, and other industries. The strength of VAT deduction and refund has been significantly increased to effectively boost market confidence. It is estimated that the annual tax rebate and reduction will be about 2.5 trillion yuan, of which about 1.5 trillion yuan will be retained for tax rebate. All the tax rebate funds will directly reach the enterprise.

Outlook: The Ministry of Finance and the State Administration of Taxation will issue official documents to clarify the industries involved in the tax refund for retention and the deadline for completing the refund.

4、 Accelerate the exchange of information between tax, customs, power, and other units and financial institutions to facilitate corporate loans

Original text: Strengthen effective financial support for the real economy. Make good use of the support tools for inclusive small and micro loans, increase agricultural support and small and medium-sized re loans, optimize regulatory assessment, and promote the significant growth of inclusive small and micro loans, and continue to increase the proportion of credit loans and first time borrowers. Guide financial institutions to accurately grasp credit policies, continue to provide financing support to industry enterprises seriously affected by the epidemic, and avoid industry-wide loan restrictions, loan withdrawals, and loan cut-off. Give full play to the role of policy-oriented and developmental finance. Promote the sharing of enterprise related credit information, accelerate the information connectivity between tax, customs, power, and other units and financial institutions, expand the coverage of government financing guarantees for small and micro enterprises, strive to create a good financing ecosystem, and further promote the solution of financing difficulties in the real economy, especially for small and micro enterprises.

Outlook: Tax, customs, power, and financial institutions will jointly issue a document linking tax credit ratings to loans for small and micro enterprises, while strengthening information sharing among various departments for small and micro enterprises.

5、 Promote the reform of the fiscal, tax and financial system

Original text: Promote the reform of the fiscal, tax, and financial system. Deepen the reform of budget performance management and enhance the binding force and transparency of the budget. Promote the reform of the financial system below the provincial level.

Outlook: While making the use of financial funds more transparent, we will promote greater coordination between the financial and administrative powers of local governments.

6、 Improve the tax collection and management system and crack down on tax evasion and fraud according to law

Original text: Improve the tax collection and management system, and crack down on tax evasion and fraud according to law.

Outlook: Using the support of big tax data, strengthen the investigation and punishment of tax evasion and fraud. The State Administration of Taxation may make arrangements for key inspection areas this year.

7、 Further strengthen tax preferential policies for high-tech enterprises

The original text: Strengthen the implementation of the R&D expense deduction policy, increase the proportion of deduction for small and medium-sized high-tech enterprises from 75% to 100%, implement tax incentives for enterprises to invest in basic research, improve policies such as accelerated depreciation of equipment and appliances, and income tax incentives for high-tech enterprises, which is equivalent to large-scale financial support provided by the state for enterprise innovation. We need to implement various innovation incentive policies to encourage enterprises to increase investment in research and development and cultivate new drivers for growth.

Outlook: The State Administration of Taxation will issue documents to implement this policy.

8、 Promote foreign trade and accelerate the completion of export tax rebate business

Original text: Take multiple measures to stabilize foreign trade. Expand the coverage of export credit insurance for small and medium-sized foreign trade enterprises, strengthen export credit support, optimize foreign exchange services, accelerate the progress of export tax rebates, and help foreign trade enterprises stabilize orders and production. Accelerate the development of new forms and models of foreign trade, give full play to the role of cross-border e-commerce, and support the construction of a number of overseas warehouses. Actively expand the import of high-quality products and services. Innovate and develop service trade and digital trade, and promote the implementation of the negative list of cross-border service trade. Deepen the reform of customs clearance facilitation, accelerate the construction of the international logistics system, and help foreign trade reduce costs and improve efficiency.

Outlook: Local tax authorities will further shorten the time required to complete export tax refund business.

9、 Add special additional deductions for personal income tax

Original text: Improve the supporting measures for the three-child birth policy, include the cost of care for infants and young children under the age of 3 in the special additional deduction of personal income tax, develop inclusive childcare services, and reduce the burden of family rearing. Strengthen the protection of minors. Improve the level of disability prevention and rehabilitation services. We will strengthen basic support for people's livelihood and provide assistance to people in need, and strive to ensure that all protection and assistance are provided.

Outlook: The State Administration of Taxation will issue documents to implement this policy.