Increases in tax deductions and lower premiums reduce financial burdens

China will extend and optimize the implementation of several preferential tax and fee policies to ease the burdens on market entities, including small companies and individual businesses, according to the State Council executive meeting chaired by Premier Li Qiang on Friday.

The policy allowing enterprises entitled to the current additional pre-tax deduction ratio of 75 percent for research and development expenses to apply a ratio of 100 percent will continue, as part of long-term institutional arrangements.

Policies halving the urban landuse tax for bulk commodity storage of logistics firms and reducing the disabled persons' employment security fund will be extended until the end of 2027.

Temporary policies such as reductions to corporate income tax on annual taxable income up to 1 million yuan ($146,000) for micro and small enterprises and self-employed individuals, and reductions to premiums for unemployment insurance and workers' compensation will be extended until the end of 2024.

Notably, the country will implement zero tariffs on coal imports until the end of 2023.

According to the meeting, these preferential policies are expected to ease corporate burdens worth more than 480 billion yuan per year.

The meeting approved the work plan on following the guiding principles of the central rural work conference and implementing key tasks of the central authorities' first policy statement this year.

All relevant departments and units must shoulder their responsibilities, implement detailed grain production support policies, and ensure that the annual grain output remains above 650 million metric tons in 2023, the meeting said.

More efforts will be made to promote rural revitalization, foster rural industries with local features and create more channels for increasing rural incomes.

The meeting also determined 103 critical tasks in terms of 10 aspects for the State Council this year. It emphasized that all departments and units should further implement and refine policy measures, formulate and improve specific implementation plans and implement them in a down-toearth manner.

It is necessary to conduct in-depth investigations and studies, and optimize policies in a timely manner, the meeting said.