The executive meeting of the State Council held recently decided to further extend the period of tax deferral for the manufacturing industry, and increase efforts to help enterprises to relieve their difficulties.

The meeting pointed out that the "five taxes and two fees" for small and medium-sized enterprises and individual entrepreneurs in the manufacturing industry, such as income tax, will be delayed for 4 months after the expiration of the period from September 1, involving a tax deferral of 440 billion yuan. At the same time, the average time for refunding the new VAT credits for the manufacturing industry is compressed to 2 working days, and it is expected that another 32 billion yuan will be refunded for manufacturing enterprises in the latter 4 months of this year.

To further support the development of small and medium-sized enterprises in the manufacturing industry, the State Taxation Administration and the Ministry of Finance jointly issued a notice on the 14th. From September 1, 2022, medium-sized enterprises in the manufacturing industry that have enjoyed a 50% tax deferral and small and micro enterprises in the manufacturing industry that have deferred 100% of their tax payments in accordance with the previous announcements, the deferral of taxes and fees has been extended for four months after the expiration of the deferral period.

“The deferred taxes include corporate income tax, personal income tax, domestic value-added tax, domestic consumption tax and attached urban maintenance and construction tax, education surcharge and local education surcharge that have been deferred in accordance with regulations for the period of November and December 2021, February, March, April, May and June 2022 (monthly payment) or the fourth quarter of 2021 and the first and second quarter of 2022 (quarterly payment), excluding taxes paid by withholding, collection and application to tax authorities for invoicing.” The relevant person in charge of the State Taxation Administration said.

The relevant person in charge of the State Taxation Administration introduced that in order to facilitate taxpayers to enjoy the policy, the taxation authorities have optimized and upgraded the information system, and those manufacturing small and medium-sized enterprises that have enjoyed the deferred tax payment policy according to the regulations, the deferred payment period will be automatically extended for 4 months after the expiration of the deferred payment period without the operation of taxpayers.