The State Council suspended the special clearing up of tax preference to avoid the embarrassment of breaking the agreement

Source: core abstract of 21st century economic report 2015-05-13: the special cleaning up of preferential policies in document 62 was suspended in the latest document 25 issued by the State Council The adjustment of this policy gives a buffer period for the adjustment of local investment policies, but in the long run, it is still a trend to cancel unreasonable preferential policies On the evening of May 11, the State Council issued a new notice on tax adjustment, which was forwarded frequently in the circle of friends of government enterprises and securities companies The notice of the State Council on matters related to preferential policies such as taxation (GF [2015] No 25) is the latest adjustment instruction to the notice of the State Council on clearing up and regulating preferential policies such as taxation (No 62 document) Document No 25 shows that the preferential policies in the contracts signed between local governments and enterprises are still valid; the part that has been fulfilled is not retroactive; the special cleaning work specified in Document No 62 will be carried out after further deployment This means that the clearing up of local preferential tax policies is suspended At the end of 2014, No 62 document was issued to clarify that all regions and departments should comprehensively clean up relevant preferential policies The traditional mode of local government's preferential tax policies to attract investment has been impacted, especially in the central and western regions; part of the preferential tax and land agreements signed between local government and enterprises are facing the embarrassment of breaking the contract Many government and enterprise personages interviewed by the reporter believed that the current timely policy adjustment is a buffer period for local policy adjustment, and in the long run, it is still a trend to cancel unreasonable preferential policies "Suspension" is a subversive adjustment to document 62 On the morning of May 12, a local businessman saw the news on his way to work According to the previous No 62 document, all regions and relevant departments should carry out a special cleaning up, carefully check the preferential policies such as tax formulated and issued by their own regions and departments, especially comprehensively sort out the contracts and agreements signed with enterprises, find out the bottom line, and ensure that there is no omission Through special clean-up, all preferential policies in violation of national laws and regulations shall be stopped, and documents shall be issued to be repealed This means that the local government will comprehensively clean up the preferential tax policies, and the preferential terms previously signed by the local government and enterprises involving recovery will be suspended At the end of April, the 21st century economic reporter interviewed many people of China Merchants and the leaders of local counties and cities The biggest embarrassment in the process of multi feedback implementation was "how to stop the implementation of the signed agreements", that is, the local government faced the risk of default, and some officials predicted that conflicts would break out in the second half of the year; the enterprise was worried that the previous tax concessions would not be obtained Even a local leader in the central region sent a personal analysis report to the reporter, which mentioned that document 62 had a great impact on local investment, especially in the central and western regions, plus eight regulations, to a certain extent, made local officials languid and lazy, that is, they did not make decisions for risks and did not strive to attract investment This also means that the pressure of stable growth of local economy is even greater However, for local merchants and some enterprises, the issue of No 25 document can be put aside temporarily: the signed agreement will continue to take effect According to No 25 document released on May 11, the preferential policies that have been issued by various regions and departments shall be implemented according to the specified time limit if there is a specified time limit; if there is no specified time limit and it needs to be adjusted, the local government and relevant departments shall set up the transition period according to the principle of holding the pace and ensuring the stability, and continue to implement during the transition period At the same time, the preferential policies in the contracts signed between local governments and enterprises shall continue to be effective; the part that has been fulfilled shall not be retroactive In addition, the notice also has a very important sentence - the special cleaning work specified in document 62 will be carried out after further deployment in the future This means that the clearing up of local preferential tax policies is suspended and will not be cleaned up in the short term For local governments, the policy buffer period before the "emergency brake" has given them some buffer and flexibility, and they don't need to worry about being pushed to the defendant's seat by enterprises due to default at the end of the year However, in the long run, it is an inevitable trend to strictly regulate tax preferences It is also the future direction to innovate and promote the market-oriented operation of special financial funds in the form of funds However, No 25 document also sets a higher threshold for the formulation of future preferential policies: all regions and departments shall formulate and issue new preferential policies in the future In addition to the existing provisions of laws and administrative regulations, those involving tax or non tax revenue approved by the central government shall be submitted to the State Council for approval before implementation; Others shall be implemented after approval by the local government and relevant departments, and the arrangement expenditure shall not be connected with the tax or non tax income paid by the enterprise Wu liangtao, a lawyer from Beijing Yingke Law Firm (Wuhan), who participated in the listing business of the new third board, predicted that in the future, it would be impossible for the local government to give large subsidies to enterprises, or to attract investment according to the previous preferential policies; at present, it should be a buffer before the emergency brake Like the local government, there are also new third board enterprises After the release of the latest notice, a securities firm in Wuhan, which is engaged in the new third board business, said that the policy is to plan the gospel of the new third board enterprises, and the subsidies and preferences still exist in their respective periods and transition periods But at the same time, he analyzed that it might be a trend to cancel at some time The Investment Promotion Bureau of Hubei No.1 development zone also analyzed that the current situation of investment promotion in all regions is not good, and the policies of local governments and enterprises before the implementation of No.62 document are blocked again, which will make the situation more difficult and the pressure of stable growth will be greater The latest adjustment at present should be to temporarily release the restrictions and let everyone operate within the legal scope From the perspective of documents, the central government will also issue new policies according to the implementation to regulate investment promotion and project promotion Most people in government and enterprises think that it is a good thing to adjust policies in time and give a buffer period for local policy adjustment; in the long run, canceling unreasonable preferential policies is conducive to reducing the vicious competition of local governments and guiding the healthy development of local industries In April, many officials from Jiangsu, Zhejiang and central regions interviewed by reporters said that the government is now transforming the past financial support into the support mode of industry-oriented fund investment At present, the national and local levels are already operating Taking Hubei as an example, on May 11, the Standing Committee of Hubei provincial government studied the establishment and operation of provincial equity investment guide fund It was pointed out at the meeting that provincial equity investment guiding fund should be established, specialized and market-oriented fund management platform should be established, unified operation and management should be implemented, and the transformation of financial funds from "one-off investment" to "recycling and rolling support" should be realized Reporter Zhou Hui