Tax burden on enterprises will be reduced instead of being raised; free administrative services will be provided for enterprises; the proportion of the payment for five social insurances and public housing fund in total salary will be lowered…The Plan of Guangdong Province to Reduce Costs of Enterprises Engaged in Real Economy (hereinafter referred to as the Plan) was recently released on the official website of the government of Guangdong province. It proposes to reduce burden on enterprises by RMB200 billion per year in average within the coming one or two years.

 

It brings forward a series of specific measures to: properly reduce tax burden and fully extend the pilot program for replacing business tax with value-added tax to ensure that tax burden on enterprises in all the industries will be reduced instead of being raised; put the measures for clearing up and standardizing governmental fund and administrative charges concerning enterprises into practice to provide free administrative services for enterprises based on approval of provincial government. The scope of exemption of 18 administrative charges, including those for domestic plant quarantine and certificate of measurement standard for public service, will be expanded from small- and micro-sized enterprises to all enterprises and individuals. Moreover, burdens on enterprises due to interests of loans and bonds will be gradually reduced, and proportion of charges occurred during financing in enterprise’s financing cost will be properly reduced.

 

In addition, the rising of labor cost will be controlled to a rational extent. Salary should maintain reasonable increase. The proportion of the payment of enterprises for five social insurances and public housing fund in total salary will be lowered properly. Energy consumption and land use costs will be further reduced.

 

Source: Translated from Invest Guangzhou, March 2, 2017