The Premier of the State Council Li Keqiang chaired an executive meeting of the State Council on April 7 to launch a series of measures such as the establishment of a cross-border e-commerce comprehensive test zone, support for processing trade, and the online holding of the Canton Fair, etc. Partial tax support policies for financial and microfinance companies.
The meeting pointed out that the current global epidemic pandemic has a huge impact on the world economy and international trade and investment. In accordance with the Party Central Committee and the State Council, we must do a good job of the "six stability" work plan, insist on expanding opening up, and adopt a series of measures to stabilize foreign trade and foreign investment to mitigate the serious impact of our economy.
At present, the traditional foreign trade has been greatly affected by the epidemic situation. In order to give full play to the advantages of cross-border e-commerce and help the foreign trade overcome difficulties with new formats, the meeting decided to add 46 cross-border e-commerce comprehensive test areas. Promote effective methods for promoting the development of cross-border e-commerce, implement support policies such as exemption of value-added tax and consumption tax, and approved collection of corporate income tax on cross-border e-commerce retail export goods in comprehensive pilot zones, and study the cities where qualified comprehensive pilot zones Included in the pilot scope of cross-border e-commerce retail imports.
The meeting called for coordinating the development of domestic and foreign trade and supporting the relief of processing trade enterprises. For domestic sales of bonded materials or finished products of processing trade, tax deferred interest will be temporarily exempted before the end of the year. The pilot of the domestic sales of processing trade enterprises can choose to pay tariffs on imported materials or finished products to all comprehensive bonded areas. Expand the scope of industries that encourage foreign investment.
In response to the severe global epidemic situation, the meeting decided that the 127th Canton Fair will be held online in the middle and late June. Invite domestic and foreign merchants to display products online, use advanced information technology, provide 24/7 online promotion, supply and purchase docking, online negotiation and other services, create an online trade platform for high-quality specialty products, so that Chinese and foreign merchants can place orders and do business without leaving the house.
The meeting pointed out that it is necessary to enhance the capacity of China-Europe trains and other freight passages, fully undertake the transfer of goods by sea and air, and support the stabilization of the international supply chain and the resumption of production.
In order to strengthen inclusive financial services, the meeting decided to implement a linkage of fiscal and financial policies and extend some of the preferential tax policies that have expired until the end of 2023. Including: VAT exemption for interest income from loans of RMB 1 million and below issued by financial institutions to small and micro enterprises, self-employed industrial and commercial households, and farm households; interest income from loans of RMB 100,000 and below issued to farmers, and insurance for the breeding industry Business premium income is included in income tax payable income at 90%; interest income from loans from small-loan companies of RMB 100,000 and below is exempt from VAT and 90% is included in corporate income tax payable income. The loan loss reserve calculated at 1% of the year-end loan balance is allowed to be deducted before income tax.
