Canton Fair Is Held Online in Late June
Premier Li Keqiang presided over the executive meeting of the State Council on April 7, which launched a series of measures such as adding a comprehensive cross-border e-commerce pilot area, supporting processing trade, holding the Canton Fair Online, etc.; to actively respond to the impact of the epidemic and strive to stabilize the basic board of foreign trade and foreign investment; the meeting decided to continue to implement some tax support policies of Inclusive Finance and small loan companies.
The meeting pointed out that the current global epidemic has a huge impact on the world economy and international trade and investment. In accordance with the work plan of the Party Central Committee and the State Council for "Six Stability", we will continue to expand opening up, take a series of measures to stabilize foreign trade and foreign investment, and mitigate the serious impact on China's economy.
At present, the traditional foreign trade has been greatly impacted by the epidemic. In order to give full play to the advantages of cross-border e-commerce and help foreign trade overcome difficulties through new formats, the meeting decided to add 46 comprehensive cross-border e-commerce pilot areas. We will promote effective measures to promote the development of cross-border e-commerce, implement supportive policies such as exemption of value-added tax, consumption tax and enterprise income tax on the export goods of cross-border e-commerce retail in the comprehensive trial area, and study the inclusion of cities in the comprehensive trial area that meet the conditions into the scope of cross-border E-commerce retail import pilot.
The meeting called for a coordinated development of domestic and foreign trade and support for processing trade enterprises to alleviate difficulties. The bonded materials or finished products of processing trade shall be sold domestically, and the interest of tax delay shall be exempted temporarily before the end of the year. We will expand the pilot projects where processing trade enterprises can choose to pay tariffs on imported materials or finished products for domestic sales to all comprehensive bonded areas. We will expand the scope of industries that encourage foreign investment.
In response to the severe situation of the global epidemic, it was decided that the 127th Canton Fair would be held online in Late June. Invite domestic and foreign merchants to show their products online, use advanced information technology, provide all-weather online promotion, supply and purchase docking, online negotiation and other services, build an online foreign trade platform for high-quality characteristic commodities, so that Chinese and foreign merchants can place orders and do business at home.
The meeting pointed out that it is necessary to enhance the capacity of China EU trains and other freight channels, fully undertake the transfer of goods by sea and air, and support the stabilization of international supply chain and the resumption of production.
In order to strengthen inclusive financial services, the meeting decided to implement fiscal and financial policy linkage and extend part of the expired preferential tax policies to the end of 2023. Including: exemption from VAT on the interest income of loans of RMB 1 million yuan and less issued by financial institutions to small and micro enterprises, individual industrial and commercial households and rural households; The interest income from loans of RMB 100,000 yuan and less and the premium income from providing insurance for breeding industry shall be included in the taxable income amount of income tax at 90%. For small loan companies, the interest income of 100,000 yuan and less than 100,000 yuan of rural household loans is exempted from value-added tax, and is included in the taxable income amount of enterprise income tax at the rate of 90%. For the loan loss reserve calculated and withdrawn at the rate of 1% of the loan balance at the end of the year, the pre-tax deduction of income tax is allowed.
