Where is the high tax rate for Chinese enterprises?

Recently, a big discussion about the cost of Chinese enterprises and the burden of taxes and fees has drawn attention. For a time, the "death tax rate", "high tax burden forced manufacturing", "higher tax fees and more" sprang up. What is the truth? How to reduce the burden on enterprises? At the first executive meeting of the State Council in the opening year, Premier Li Keqiang stated: "There is a voice recently that the corporate tax burden is too high. In fact, it is carefully opened to calculate the account, mainly because the non-tax burden of the enterprise is too heavy. Where is the high cost of the enterprise? Isn't the institutional transaction cost too high?" Experts said that to solve the problem of high cost of manufacturing taxes and fees, it is necessary to "recognize the tax cuts seriously and actually reduce the fees."

The board can't play "tax"
According to data from the Ministry of Finance, in 2008, China reduced the corporate income tax rate from 33% to 25%. If international comparison is made, this tax rate is moderate. The standard rate of VAT in China is 17%, and it is intermediate in more than 160 countries and regions that implement VAT in the world. These two major taxes, accounting for about 60% of China's tax revenue, are the two most important taxes.
Liu Shangxi, director of the Finance Department of the Ministry of Finance, pointed out that compared with developed countries, China's macro tax burden is actually not high. However, if the manufacturing industry is compared with the United States, the tax burden of Chinese enterprises is indeed higher. Because of the different tax systems, the United States pays taxes mainly on households and individuals, and enterprises pay taxes as a supplement; while China mainly imposes on enterprises, so there are China. Corporate tax pays more impressions.
For the "death tax rate" in the industry, Li Zheng, a professor at the School of Economics of Jilin University, believes that the tax rate is relative. If the leakage rate is low and matches the public service and matches the national development stage, even a high tax rate may be reasonable. If the leakage rate is high and does not match public services, even a low tax rate may be unreasonable. It is impossible to judge the burden of the company simply from the tax rate.

The burden of stubbornness lies in the "fee"
Where is the root cause of corporate tax burden? Institutional transaction costs mainly refer to the costs that enterprises need to pay in accordance with various systems, regulations and policies formulated by the government, such as environmental assessment, energy assessment, clean production, land and other approval costs. The results of a number of experts on the investigation of corporate tax and fee costs coincided with the conclusion of Premier Li Keqiang.
Zhou Qingjie, a professor at the School of Economics of Beijing Technology and Business University, said in an interview with this reporter that "from the annual reports of listed companies or the fees disclosed by enterprises themselves, China's various types of 'fees' are very numerous and opaque. This includes both Fees, including various types of rent-seeking and gray costs. 'Fee' has no law to stipulate, and there are more places where there are irregularities." He believes that, because the collection of fees is relatively arbitrary, this is the cost of the enterprise and The expectation of income brings uncertainty, which increases the uncertain factors in the investment environment and is not conducive to the entry of new investment.
Zhang Jun, an economics professor at Fudan University, believes that these non-tax burdens not only refer to the actual prices paid for access to resources, land and financing, but also the numerous surcharges that the government collects from companies. Many Chinese companies, especially private ones, pay a higher price than state-owned enterprises to obtain land and financing, which increases the cost of the enterprise. Over time, these may shake the comparative advantage of China's manufacturing industry.

Breaking the problem requires internal and external "rule"
Regarding the taxation, the Ministry of Finance responded, "In the next step, we will continue to strengthen the awareness of 'water and fish farming'. While implementing the existing tax reduction and fee reduction policies, we will focus on improving the tax system and studying new tax reduction and fee reduction measures. Further reduce the burden on the business."
The Ministry of Finance responded that the Ministry of Finance will further clean up and standardize the fees charged by relevant enterprises with relevant departments, and then cancel, adjust and standardize a number of administrative fees and standards.
The State Council executive meeting on January 4 also decided that, on the basis of the cancellation of 230 administrative examination and approval items implemented by the designated central areas of the current government, 53 licenses for private school enrollment brochures, advertisement registration approval, and cotton processing qualification certification will be cancelled. Cancel 20 intermediary service matters related to legal qualifications and approval of railway transportation infrastructure equipment manufacturers.
Li Zheng believes that seriously reducing taxes and realizing the reduction of fees can effectively create a good and competitive environment for entrepreneurs to create an entrepreneurial environment that can effectively cope with the inevitable trend of rising labor costs and reduce China's manufacturing enterprises. total cost.
"Tax and fee reform must be carried out. But from the perspective of the company's own reaction, this process is relatively slow. In this case, if companies want to remain competitive, they should take the initiative and make a difference. For the manufacturing industry, The focus is still to establish a brand, through technological innovation, management innovation, improve their manufacturing level and return rate." Zhou Qingjie said. (Source: People's Daily Overseas Edition)

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