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Drug companies cut taxes! The Prime Minister’s report announces the new policy!
In recent years, the pharmaceutical industry has been calling for lower taxes and fees. After the implementation of policies such as the reform of the camp and the two-vote system, pharmaceutical companies have felt more direct fiscal and tax pressures. On March 4th, Zhao Yixin, deputy of the National People's Congress and chairman of Shandong Xinhua Medical Devices Co., Ltd., said in a discussion on behalf of the medical representatives. At this stage, the company has a high VAT rate and a heavy business burden. The challenge requires government encouragement and support. According to public information, there is currently no fiscal and tax incentives for pharmaceutical R&D investment. Although the state has incentives for deductions for R&D investment, there are challenges in its implementation, resulting in less than half of the R&D expenses of many major R&D-type pharmaceutical companies. You can enjoy the benefits and have a greater impact on many SMEs whose financial systems are not yet sound. Specifically, the state has stipulated that the transfer of technology for new biomedical products of less than 5 million yuan is not taxed, but it is not clear what is “a new variety of biomedicine”. The interpretation of the local tax bureau is to obtain new drugs for production approval. This does not comply with the current law of technology transfer. New drugs can be transferred before the clinic, the first phase, the second phase, the third phase, etc. The preferential taxation policy for technology transfer needs to be clarified.
On March 5, Premier Li Keqiang announced in the government work report that the annual taxable income of small and micro enterprises was increased to 500,000, the R&D expenses were increased by 50% to 75%, and the VAT rate was The current four-grade degenerate to third-class tax reduction measures. In the context of the two-vote system and the reform of the camp, these measures are of great benefit to pharmaceutical companies.
According to the government work report, the deficit rate is scheduled to be 3%, and the deficit rate remains unchanged. The main reason is to further reduce taxes and reduce fees. The annual corporate tax reduction will be about 350 billion yuan, and the enterprise-related fees will be about 200 billion yuan. Let the market players have a personal experience. At the same time, some combined tax reduction policies are also announced: Small and micro enterprises will continue to expand the scope of halving income tax concessions, and the annual taxable income limit will be increased from 300,000 yuan to 500,000 yuan; The deduction ratio has been increased from 50% to 75%, and every effort has been made to further demonstrate the structural tax reduction efforts and effects.
Because some of the previous fees have caused many companies to be overwhelmed, the government report further proposed to significantly reduce the non-tax burden: First, comprehensively clean up and regulate government funds, cancel urban public utilities and other funds, and authorize local governments to autonomously reduce some funds. The second is to cancel or suspend 35 administrative fees for the central government-related enterprises, and the fees and charges will be reduced by more than half. The retained projects should be as low as possible. All localities must also cut administrative fees for enterprises. The third is to reduce the government-operated business-related charges, clean up and cancel the administrative examination and approval of intermediary services, and promote the reduction of financial and railway freight transport and other business-related charges, and strengthen the supervision of market-adjusted service charges. Fourth, continue to appropriately reduce the “five insurance and one gold” policy. The fifth is to reduce the institutional transaction costs and reduce the cost of energy use and logistics by deepening reforms and improving policies. All relevant departments and units must give up their interests to the United States, so that enterprises can go into battle and create conditions to form new competitive advantages in China.
We will implement and improve the comprehensive pilot policy for the reform of the camp. Simplify the VAT rate structure. This year, the four-rate tax rate will be simplified to the third level, creating a simple, transparent and fair tax environment, further reducing the tax burden on enterprises. We will promote the reform of the division of financial and expenditure responsibilities between the central and local governments, speed up the formulation of an overall plan for income division, improve the local tax system, and regulate the behavior of local governments. In-depth promotion of the government's budget and final accounts, forced to reap the funds to revitalize, improve the efficiency of the use of funds, each money must be spent in the clear, effective.
The proportion of deductions for research and development expenses for technology-based SMEs proposed in this Prime Minister’s report has increased from 50% to 75%. Every effort has been made to further demonstrate the structural tax reductions and effects. For R&D-type pharmaceutical companies, it will undoubtedly be the first. Taxation feels the changes brought about by the New Deal.