Search Issues
Data collection and preparation by Tang Song, Mainland China Business Advisory Service Consultant of IPIM.
THE STATE COUNCIL PROMULGATES THE OPINION ON FURTHER SUPPORTING THE HEALTHY DEVELOPMENT OF SMALL AND MICRO ENTERPRISES
Under the complicated influence of the constantly changing internal and external economic situation, existing small and micro enterprises are facing various severe issues such as extensive operational pressure, increasing running costs, difficulties in financing and high taxation. The State Council has recently promulgated the Opinion on Further Supporting the Healthy Development of Small and Micro Enterprises which sets out a total of 29 specific measures covering eight areas, with the following highlights:
1. Implementation of tax preferential measures to support small and micro enterprises. To raise the taxable threshold of value-added tax and business tax, extend implementation of the 50%-reduction of enterprise profit tax to 2015 and also expand the scope of coverage; eligible a technology-based service platform will be included as part of the preferential measures for import tax; expedite the pilot scheme on switching business tax to value-added tax, with an aim of gradually resolving the double taxation issue of business tax in service sector.
2. Continue to improve fiscal capital supporting policy. In 2012, the total capital amount was raised from RMB12.87 billion to RMB14.17 billion, and will be increased annually, tilted in favour of small and micro enterprises and the central and western region. At the same time, a national SMEs development fund will be set up in accordance with legislation, and continue to remedy and abolish the levy of various improper fees. Government procurement will support the development of small and micro enterprises.
3. Further consolidates the various financial policies to support the development of small and micro enterprises. The growth rate for loans provided by banks and financial institutions for small and micro enterprises should not be lower than the average growth rate of all loans; accelerate the development of small financial institutions; expand financing channels, strengthen credit and guarantee service and aim at resolving the financing difficulties faced by small and micro enterprises.
4. Strengthen public services provided for small and micro enterprises. By 2015, it aims to establish and improve 4,000 public services platforms to provide service to small and micro enterprises, with the priority of developing 500 national SME public service demonstration platforms, to provide support for small and micro enterprises in technological transformation, enhance creativity as well as operation and management levels.
Reference：
Opinion on Further Supporting the Healthy Development of Small and Micro Enterprises (NDRC [2012] No. 14)http://www.gov.cn/zwgk/2012-04/26/content_2123937.htm
Note: All information is for Reference only. While every effort is made to ensure the accuracy of the information, IPIM will not be held responsible or liable for any errors.
