Manufacturing tax deferral period extended

Latest News: Manufacturing is the foundation of the real economy. The executive meeting of the State Council held on the 13th decided to further extend the period of deferred tax payment for the manufacturing industry and step up efforts to help enterprises.

The meeting pointed out that for the “five taxes and two fees” such as income tax paid in the early stage by small, medium and micro enterprises and individual industrial and commercial households in the manufacturing industry, the payment will be delayed for four months after the expiration of the period from September 1, involving a deferred tax of 440 billion yuan. At the same time, the newly added value-added tax credits for the manufacturing industry will be refunded immediately after application, and the average time of receipt is reduced to 2 working days.

Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute, said that deferred tax payment is equivalent to the state providing an “interest-free loan” for enterprises. Effectively reduce the burden on enterprises and “increase oxygen”, and better support the high-quality development of market entities.

In order to further support the development of small, medium and micro enterprises in the manufacturing industry, the State Administration of Taxation and the Ministry of Finance jointly issued the “State Administration of Taxation” on the 14th.
Announcement of the Ministry of Finance on Matters Concerning the Continuation of Deferring the Payment of Certain Taxes and Fees by Small, Medium and Micro Enterprises in the Manufacturing Industry For small and micro manufacturing enterprises with 100% of taxes and fees, the deferral period for deferred payment of taxes and fees has been extended for another 4 months.

“The deferred tax payment includes the period of November, December 2021, February, March, April, May, June 2022 (monthly payment) or the fourth quarter of 2021, the first of 2022 Quarterly and second quarter (paid quarterly) corporate income tax, personal income tax, domestic value-added tax, domestic consumption tax, and additional urban maintenance and construction tax, education surcharge, and local education surcharge that have been deferred according to regulations, excluding withholding and withholding Payment, collection and payment, and taxes paid when applying to the tax authority for invoicing on behalf of others,” said the relevant person in charge of the State Administration of Taxation.

For example, taxpayer A is a small, medium and micro enterprise in the manufacturing industry as stipulated in the relevant announcements, and it declares and pays relevant taxes and fees on a monthly basis. In the early stage, the relevant taxes and fees for the period of November 2021 have been deferred according to the regulations, and the deferred payment period is 9 month, according to the original policy, the payment will be made before the end of the application period in September 2022. After the implementation of this policy, the relevant tax payment deadline in November 2021 will be automatically extended by 4 months, and the relevant taxes and fees in December 2022 can be paid together with the declaration period in January 2023.

The relevant person in charge of the State Administration of Taxation introduced that in order to facilitate taxpayers to enjoy the policy, the tax authorities have optimized and upgraded their information systems. If the small, medium and micro enterprises in the manufacturing industry have enjoyed the policy of deferred payment of taxes and fees as required, there is no need for taxpayers after the expiration of the deferred payment period. Operation, the deferred payment period is automatically extended for 4 months.