Recently, the State Administration of Taxation issued a circular (hereinafter, the “Circular”), requiring all levels of tax agencies to thoroughly implement the tax and fee reduction policy, specifically including the following aspects:
1. Proactive action
According to the State Administration of Taxation, the implementation of this tax and fee reduction policy is of great significance. Therefore, all levels of tax agencies are required to enhance their sense of political responsibility and proactively perform their work to ensure that the policy measures are properly implemented, thereby providing businesses and individuals with a fulfilling sense of gain.
2. Vigorous fulfillment of responsibilities
In terms of how implementation will be carried out, the Circular states that the State Administration of Taxation has set up a leading task force to implement the tax and fee reduction measures with an office (led by the Income Planning and Accounting Department), a policy development section (led by the Policy and Regulation Department), a collection and assessment section (led by the Department of Income Planning and Accounting Department and the Collection and Technology Development Department), a monitoring and supervisory section (led by the Inspection and Internal Audit Department), and a service and promotion section (led by Tax Service Department and the Tax Promotion Center). The Circular also requires all levels of tax agencies to setup corresponding mechanisms in reference of the above and create a task force setting out the responsible entities to engage in work based on a mission list and a time schedule.
3. Push for implementation as soon as possible
With respect to specific policies, the State Administration of Taxation indicated that once the relevant policy measures, such as the inclusive tax cuts for small and micro enterprises that has already been introduced, have been implemented, the State Administration of Taxation will quickly start looking into other relevant policies and actively promote them so that they may be promulgated and implemented as soon as possible. Each provincial tax agency is required to coordinate with financial departments in actively exploring policies for reducing types of local taxes and surcharges for small-scale VAT taxpayers by up to 50%, as well as timely issue operating documents and properly execute the follow-up implementations. Tax agencies below the provincial level are required to closely track the implementation of policies and measures, such as the inclusive tax cuts for small and micro enterprises, improve the feedback mechanism for tax policy implementation, and timely report issues and suggestions in the course of in policy implementation. In addition, there shall be more efforts to research and explore further tax and fee reductions, as well as actively propose any, and actively put forth any practical, feasible, simple and easily doable comments and suggestions so as to continue making improvements to the tax and fee reduction policies and measures.
4. Greater tax handling convenience measures
In terms of the implementation of tax handling practices, the State Administration of Taxation has proposed that the tax authorities at all levels should have a service philosophy of putting the taxpayer and fee payers in the center and continue to improve and optimize administrative service measures, such as streamlining procedures, simplifying information, and facilitating services. At the same time, tax agencies at all levels shall focus on providing better services to small and micro enterprises for their development and implement the aforementioned inclusive tax and fee reduction measures. These tax agencies are also required to designate specialized departments and dedicated personnel to take charge of providing services to small and micro enterprises and to set up a consultation service desk at each tax service center regarding the preferential policies for small and micro enterprises to ensure that those enterprises may timely resolve any tax claims they may have.
In general, the release of this Circular will help local tax agencies improve the quality of services and provide more convenient tax services for the people. Meanwhile, this also signals that there will be more tax and fee reduction policies in various jurisdictions.