Premier Li Keqiang presented the Government Work Report on the First Session of the 13th National People’s Congress in Beijing, reviewing the outcome of government work for last five years and providing suggestions for the coming year. During the press conference after Premier Li’s presentation, the Finance Minister Xiao Jie indicated to enhance the beneficial tax policy to both individual and corporate tax payers.
During last five years, tax burden of market operators was released equal to the amount of above 3000 billion RMB, with the GDP in 2017 exceeding 80000 billion RMB. The tax incentives will last and be enhanced in 2018. For corporate tax payers, the new purchased machine and equipment can be fully deducted in the year of acquiring if the value of such machine and equipment is below 5 million RMB. The threshold for determining small and medium enterprises is to be unified to benefit more tax payers. The beneficial tax policies will lead revenue loss to the government equal to 800 billion RMB. The government is to remove several administrative fees and service fees as well, lightening the burden of over 300 billion RMB to the tax payers.
Xiao also announced that the government will facilitate international cooperation on eliminating the tax discrimination in policy designing and implementation. In addition, China will encourage more countries to join the Base Erosion and Profit Shift Project led by the OECD, and reduce import duty in transactions with the “One-Belt-One-Road” Countries. “Tax plays a critical role in our ‘One-Belt-One-Road’ Initiative”, Xiao said.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
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