China Manufacturing Tax Moratorium Extended Again

The executive meeting of the State Council held on September 13 decided to further extend the period of tax moratorium for the manufacturing industry to further help enterprises to relieve their difficulties.

The meeting pointed out that the "five taxes and two fees" for small and medium-sized enterprises and individual entrepreneurs in the manufacturing industry, such as income tax, will be delayed for 4 months after the expiration of the deadline from September 1, involving a tax relief of 440 billion yuan. At the same time, the average time for refunding the new VAT credits for the manufacturing industry is compressed to 2 working days, and it is expected that another 32 billion RMB will be refunded for manufacturing enterprises in the latter 4 months of this year.

To further support the development of manufacturing SMEs, the State Administration of Taxation and the Ministry of Finance jointly issued the "Notice of the State Administration of Taxation and the Ministry of Finance on Matters Relating to the Continued Deferment of Payment of Some Taxes and Fees for Manufacturing SMEs" on the 14th, specifying that since September 1, 2022, the manufacturing medium-sized enterprises that have enjoyed a 50% deferment of payment of taxes and fees and the manufacturing medium-sized enterprises that have deferred 100% of payment of taxes and fees in accordance with the previous relevant announcement Small and micro enterprises, the deferred tax payment period will continue to be extended for four months after the expiration of the deferred tax payment period.

"The deferred taxes and fees include corporate income tax, personal income tax, domestic value-added tax, domestic consumption tax and the attached levies for November and December 2021, February, March, April, May and June 2022 (paid monthly) or the fourth quarter of 2021, the first quarter and the second quarter of 2022 (paid quarterly). urban maintenance and construction tax, education surcharge and local education surcharge, excluding taxes and fees paid by withholding, collection and application to tax authorities for invoicing." The relevant person in charge of the State Administration of Taxation said.

The relevant person in charge of the State Administration of Taxation introduced that in order to facilitate taxpayers to enjoy the policy, the taxation authorities have optimized and upgraded the information system, and the deferred tax payment period will be automatically extended for 4 months after the expiration of the deferred payment period without the operation of taxpayers for manufacturing small and medium-sized enterprises that have enjoyed the deferred tax payment policy according to the regulations.