Premier Li Keqiang of the State Council chaired an executive meeting of the State Council on March 24, deploying and implementing policies such as increasing the ratio of deductions for R&D expenses of manufacturing enterprises, to stimulate innovation and promote industrial upgrading; it was decided to postpone the repayment of principal and interest for inclusive small and micro enterprise loans. and the credit loan support plan was further extended to the end of the year; passed the Vocational Education Law of the People's Republic of China (Revised Draft).
The meeting pointed out that in accordance with the deployment of the Party Central Committee and the State Council, the role of enterprises as the main body of innovation should be better played, and market-oriented, fair and inclusive incentive policies should be used more, and enterprises and the whole society should be leveraged to increase R&D investment, enhance the stamina of economic development, and promote the optimization of economic structure. . In recent years, the preferential tax policies for the additional deduction of R&D expenses have been continuously strengthened, which has effectively promoted the innovation of enterprises. In order to implement the relevant measures of the "Government Work Report" to support enterprise innovation, the meeting decided that, starting from January 1 this year, the super deduction ratio of R&D expenses of manufacturing enterprises will be increased from 75% to 100%, which is equivalent to every 1 million invested by enterprises. RMB 2 million of R&D expenses can be deducted from the taxable income. The implementation of this policy is expected to add an additional 80 billion yuan in tax cuts for enterprises this year on top of last year's tax reduction of more than 360 billion yuan. This institutional arrangement is the most powerful policy in this year's structural tax cuts. The second is to reform the calculation method of super deduction and settlement of R&D expenses, allowing enterprises to choose to enjoy the preferential deduction on a semi-annual basis. The R&D expenses in the first half of the year will be deducted from the income tax final settlement of the following year to the prepayment in October of the current year. Deductions will allow enterprises to benefit as soon as possible. At the same time, it is necessary to study tax support policies for technology R&D service enterprises and "mass entrepreneurship and innovation" enterprises. The meeting called for strengthening policy publicity and interpretation, optimizing tax services, streamlining the review process, improving the convenience for enterprises to enjoy policies, and doing good things well.
The meeting pointed out that since last year, two direct monetary policy tools to support small and micro enterprises have been implemented, namely, incentives for local corporate banks to delay repayment of principal and interest for inclusive small and micro enterprise loans, and preferential financial support for the issuance of small and micro credit loans. It has played an important role in helping small and micro enterprises overcome difficulties, ensuring employment and people's livelihood, and stabilizing the economic fundamentals. In order to maintain undiminished financial support for small and micro enterprises, ensure more convenient financing for small and micro enterprises, and maintain stable and moderate comprehensive financing costs, the meeting decided to extend the implementation of two direct monetary policy tools in the early stage to the basis of the first quarter of this year. We will further extend the implementation period until the end of this year, and provide additional assistance to small and micro enterprises to better play their important role in stabilizing employment. First, for inclusive small and micro enterprise loans that expire before the end of 2021, enterprises and banks will independently negotiate to defer principal and interest repayment, and continue to provide incentives to local corporate banks that handle loan deferrals in accordance with regulations. The incentive ratio is 1% of the loan principal. The second is to issue small and micro credit loans to qualified local corporate banks, and continue to provide preferential financial support at 40% of the principal. At the same time, it is necessary to study and increase policy support for individual industrial and commercial households.
The meeting pointed out that to run vocational education well, it is necessary to adapt to the development requirements of the socialist market economy, adhere to reform and innovation, highlight employment orientation, alleviate structural contradictions in employment and promote the improvement of employment quality. The meeting passed the "Law of the People's Republic of China on Vocational Education (Revised Draft)", which stipulates the integration of industry and education and school-enterprise cooperation, supporting social forces to hold vocational schools, and promoting the integration and mutual recognition of academic achievements in vocational education and general education. The meeting decided to submit the draft to the Standing Committee of the National People's Congress for deliberation.
The meeting also studied other matters.
