SMEs will welcome the policy of warming and supporting four policies for one year next year.

Small and medium-sized enterprises, especially small-scale and low-profit enterprises and difficult enterprises will usher in more policy warming next year.

Yesterday, the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Administration of Taxation jointly issued a notice announcing the implementation of four employment support policies that were implemented in December last year and expired at the end of this year.

The four policies are “allowing difficult enterprises to delay payment of social insurance premiums within a certain period of time”, “reducing four social insurance premium rates in stages”, “using unemployment insurance funds to help difficult enterprises to stabilize employment positions” and “encouraging difficult enterprises”. Stabilize the workforce by carrying out on-the-job training for employees."

The notice puts special emphasis on the emphasis on the difficult SMEs. Under the same conditions, it is necessary to give priority to accepting applications for SMEs to pay social insurance premiums, social insurance subsidies, Post subsidies and on-the-job training subsidies; if they meet the conditions, they will be given priority.

SME business stabilized and rebounded
SMEs are an important force in China's economic and social development. Li Yizhong, Minister of Industry and Information Technology, mentioned to the Standing Committee of the National People's Congress yesterday about the promotion of the development of small and medium-sized enterprises. As of the end of September this year, China's small and medium-sized enterprises reached 10.231 million, exceeding 99% of the total number of enterprises. At present, the value of the final products and services created by SMEs is equivalent to about 60% of the gross domestic product. The tax payment is about 50% of the total national tax revenue, providing nearly 80% of urban employment jobs.

After the outbreak of the international financial crisis, SMEs have been struggling, and the central government has introduced a series of policies and measures to promote the development of SMEs. This includes repeatedly reducing the loan interest rate of bank financial institutions, raising the export tax rebate rate for some commodities, implementing the VAT transition, and canceling more than 100 administrative fees.

Li Yizhong said that at present, the production and operation of small and medium-sized enterprises has stabilized and rebounded. From January to August this year, profits and taxes paid increased by 1.6% and 10.4% respectively.

Increase policy support
Starting from next year, in addition to the four employment support policies extended this time, small-scale and low-profit enterprises will also receive a one-year income tax concession, and the income will be deducted from the taxable income by 50%, and the enterprise income tax will be paid at the rate of 20%.

Li Yizhong said that next year, it will increase fiscal and taxation support, gradually expand the special budget of the central government budget to support the development of small and medium-sized enterprises, implement and improve various preferential tax policies for small and medium-sized enterprises, especially to reduce the small-scale enterprise income tax for next year. The semi-preferential policy is in place.

However, Zhao Hengqun, a professor of taxation at Dongbei University of Finance and Economics, told CBN reporters that China currently has a corresponding definition of SMEs from the tax law, but there is no uniform standard in the socioeconomic statistics. This has affected the implementation of preferential policies to a certain extent.

For example, the income tax preferential policies to be implemented next year are only applicable to those enterprises whose accounting is relatively sound and the tax authorities can carry out auditing and collecting, and many difficult SMEs that regularly pay taxes in a fixed amount are not included in the preferential policies.

Yesterday, Li Yizhong also said that the development of SMEs still faces many difficulties and problems. For example, the contradiction between financing supply and demand is still outstanding, participation in government procurement is still difficult, structural adjustment and transformation of development methods are difficult, and the statistical monitoring of SMEs is still relatively weak. The relevant systems are still not perfect, and the government's support for SMEs needs to be further strengthened.

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