Jing Cai Shui [2019] No. 2101

To Financial Bureaus in all districts, Tax Services in all districts (areas) of Beijing under the State Taxation Administration, Human Resources and Social Security Bureaus and Medical Security Bureaus in all districts, all branches and management departments of Beijing Municipal Housing Provident Fund Management Center, and all relevant organizations,

To further promote the reform of delegating powers, improving regulation and optimizing services, continuously improve the business environment in Beijing, effectively reduce taxes and fees, streamline matters related to the handling of taxes and ease the process, the Measures to Further Optimize "Paying Tax" in Doing Business are hereby formulated in accordance with the requirements of Beijing Municipal Party Committee and Beijing Municipal Government for a new round of deepening the above reform and improving the business environment. All relevant departments are required to implement the Measures in light of their actual conditions.

Beijing Municipal Bureau of Finance

Beijing Municipal Tax Service, State Taxation Administration

Beijing Municipal Human Resources and Social Security Bureau

Beijing Medical Security Bureau

Beijing Municipal Housing Provident Fund Management Center

October 28, 2019

Jing Cai Shui [2019] No. 2101 Appendix

Measures to Further Optimize "Paying Tax" in Doing Business

The following measures are hereby formulated to implement the requirements of Beijing Municipal Party Committee and Beijing Municipal Government for deepening the reform of delegating powers, improving regulation and optimizing services and for optimizing the business environment, to promote a new round of reforms concerning paying tax in doing business, and to continuously optimize Beijing's business environment for tax paying.

I. Implement measures to reduce taxes and fees on a larger scale

1. Implement various tax reduction policies effectively. According to the CPC Central Committee's unified regulations, the part of the annual taxable income of a small low-profit enterprise not exceeding RMB 1 million shall be counted as taxable income at a reduced rate of 25%; the part exceeding RMB 1 million but not exceeding RMB 3 million shall be counted as taxable income at a reduced rate of 50%. VAT rates shall be cut from 16% and 10% to 13% and 9%.

2. Reduce or exempt relevant taxes and fees to a maximum extent within the scope of local authority. The resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty, farmland occupation tax, educational surcharges and local educational surcharges for small-scale taxpayers shall be reduced at a maximum rate of 50%. The construction fees for cultural undertakings shall be reduced at a maximum rate of 50%. In terms of the employment security fund for the disabled, the proportion of the disabled employed to an enterprise's total staff shall be lowered from 1.7% to the statutory 1.5%.

3. Implement the policies on the refund of period-end uncredited VAT. According to the CPC Central Committee's unified regulations, the system of refunding uncredited tax shall be comprehensively implemented in all industries. Eligible general VAT payers may apply for the refund of incremental uncredited VAT. The tax refund conditions shall be relaxed for the production and sale of non-metallic mineral products, general equipment and other advanced manufacturing industries. The tax refund procedures shall be further optimized; the whole process of tax refund application, tax refund approval, and tax refund from the Treasury shall be handled online.

4. Lower social insurance rates. Since May 1, 2019, the proportion of enterprises' contributions to the pension insurance shall be reduced from 20% to 16%, and the proportion of contribution to unemployment insurance shall remain at a low rate of 1%.

5. Implement a 5%-12% proportion of contribution to housing provident fund. Enterprises may choose within the range. The "e-window" service platform and the online service platform for housing provident fund shall provide automatic reminder of contribution proportion policies to facilitate the enterprises' timely update and inquiry.

II. Optimize and upgrade the tax handling system

6. Launch the accurate reminder of tax matters. With the analysis of big data related to tax, the latest tax policies, tax-related matters, tax collection risks and other information shall be accurately sent to taxpayers through the e-tax platform, so as to facilitate their search of policies, judgment of applicable conditions, self-inspection and self-correction.

7. Optimize the intelligent consulting service mode. The pace shall be sped up to upgrading the intelligent consulting system; more efforts shall be made to promote the web, APP and small program terminals of the intelligent consulting platform; the development of voice intelligent consulting shall be explored so as to provide convenient consulting services for taxpayers and participants.

8. Provide the function of inquiring business time. The online service platform for social insurance and the online service platform for housing provident fund participants shall be equipped with a new function of inquiring business time, so that participants may easily allocate their time for processing.

9. Optimize and upgrade the VAT invoice system. The function of ticking, confirming and verifying VAT invoices shall be improved, and the reminder of deductible invoices shall be provided.

III. Streamline tax handling matters

10. Implement the combined declaration of urban land use tax and real estate tax. The declaration forms for urban land use tax and real estate tax shall be consolidated, and the deadlines for the payment of urban land use tax and real estate tax shall be unified to reduce the times of taxpayers' declarations.

11. Implement the "list-based" management of preferential tax policies. The list of preferential tax polices shall be updated at any time. Except for specific circumstances requiring approval from tax authorities according to law and filing with tax authorities, taxpayers and participants shall "identify and enjoy the preferential tax polices when making a declaration on their own." The relevant information shall be kept for future reference.

IV. Simplify the tax handling process

12. The first application for VAT invoices by a newly established enterprise shall be handled immediately. From an integrated window, an enterprise may obtain its business license, official seal, tax control equipment and invoices through one visit. All matters may be handled at one window.

13. Simplify the tax relocation process. For taxpayers with a normal account and without unsettled matters, their application for inter-district relocation in Beijing shall be processed immediately. For the key enterprises relocating across districts, their fiscal and tax benefits may be shared in previous and new districts.

14. Carry out online classified handling of tax de-registration. Eligible enterprises will no longer need to deal with the tax clearance certificate and may have their process handled despite temporary lack of some documents as long as they promise to submit these documents later. The required documents and processes shall be further simplified. All matters shall be handled immediately at one window as part of the "package service", and online handling shall be offered, requiring no more on-site visit.

15. Optimize the management of proxy issuance of VAT invoices. Tax authorities shall offer the service of online proxy issuance of electronic general VAT invoices. This service requires the payment of additional taxes and fees.