Chinese VAT Reform Provides a Sample for the World The executive meeting of the State Council, held on April 19, 2017, decided to introduce further tax abatement and continue to boost the cost of the real economy. The conference launched 6 tax reduction policies, first, the VAT rate was reduced from 4 to 3 , and the tax rate was reduced by 13% from July 1. The second is to expand the scope of small profit enterprises that enjoy preferential enterprise income tax. Third, we will increase the deductible ratio of R&D expenses for small and medium-sized enterprises in science and technology. Fourth, we will carry out pilot projects on tax policies for venture capital enterprises and angel investors. The five is to promote the personal income tax deduction of commercial health insurance before tax. The sixth is to extend some of the tax incentives expired at the end of 2016 until the end of 2019. After all the six tax reductions have been put in place, we have put in place a comprehensive push to reduce the number of tax refunds in the first four months of 2017. We expect to reduce the tax burden of all kinds of market subjects by more than 380 billion yuan in 2017. Subsequently, the State Administration of Taxation issued a notice on the implementation of further tax reduction measures to optimize tax payment services, and made clear ten service measures to ensure the smooth implementation of the six tax reductions.
According to the statistics of the State Administration of Taxation, in the end of September, 2016, a total of 1063.9 billion yuan of tax relief has been cut in the total amount of tax