1、 Preferential policies for industrial adjustment in Western China

 

In order to carry out a new round of western development strategy, the Party Central Committee and the State Council decided to give 15% preferential tax rate to enterprises encouraged by the state in the western region. According to the announcement of the State Administration of Taxation on enterprise income tax issues related to the in-depth implementation of the western development strategy (Announcement No. 12, 2012 of the State Administration of Taxation), from January 1, 2011 to December 31, 2020, the industrial projects set in the catalogue of encouraged industries in the western region are the main business in the western region, and the main business income accounts for the enterprise in the current year Enterprises with a total business income of more than 70% may pay enterprise income tax at a reduced rate of 15% upon application by the enterprise and verification and confirmation by the competent tax authorities.

 

On August 20, the national development and Reform Commission issued the catalogue of encouraged industries in the western region (Order No. 15 of the national development and Reform Commission). Important documents for the development of the western region, known as "the most difficult production document in China", were finally issued.

 

At present, Inner Mongolia Wuhai Yadong Fine Chemical Co., Ltd. and Inner Mongolia Xinya Chemical Co., Ltd. of our group are working hard to synchronize the application policies.

 

2、 Preferential policies for recycling economy and environmental treatment of MVR sewage treatment project

 

Yadong chemical industry applied for the MVR sewage treatment project from the state to give preferential financial and tax policy support (enterprise income tax, value-added tax reduction policy) from environmental protection, circular economy, resource utilization and other aspects, so as to create greater social and economic benefits. The following requirements must be met:

 

1. The purchase of special equipment for environmental protection shall conform to the requirements of the State Administration of Taxation and the Ministry of finance The State Development and Reform Commission announced the catalogue of preferential corporate income tax for special equipment for energy conservation and water conservation and the catalogue of preferential corporate income tax for special equipment for environmental protection (CS (2008) No. 115), which conforms to the name of the equipment listed in the catalogue, and the description of the purchase of environmental protection equipment, including the performance parameters and application fields of the purchased equipment in accordance with the relevant catalogue. The enterprise income tax payable in the current year can be offset at 10% of the investment amount of special equipment; if the enterprise's tax payable in the current year is insufficient for the credit, it can be carried forward to the following years, but the carrying forward period shall not exceed 5 tax years.

 

2. The enterprises engaged in environmental protection, energy saving and water saving projects shall meet the requirements of the catalogue of preferential corporate income tax for environmental protection, energy saving and water saving projects (Trial) (CS (2009) No. 166). The supporting documents of the listed equipment enterprises, including the relevant standards of the equipment, such as national, local or industrial standards (including the Filing Certificate of the technical supervision department), and equipment quality assurance Certificate system, user use report and equipment qualification certificate; it is required to obtain Tianjin environmental protection industry equipment (product) production confirmation declaration form. Since the first tax year of the project income, the enterprise income tax shall be exempted from the first year to the third year, and the enterprise income tax shall be reduced by half from the fourth year to the sixth year.

 

3. The sludge produced after sewage treatment is used as the dried sludge. The proportion of main components of raw materials shall not be less than 90%. The application for enjoying the products of comprehensive utilization of resources specified in this notice has been submitted to the product quality inspection organization with the qualification of the quality and technical supervision department at or above the provincial level for quality inspection, and the inspection report issued by the organization that meets the requirements of product quality standards and the production technology requirements specified in this document has been obtained. In order to apply for the preferential policy of refund (Exemption) of value-added tax on products and services for comprehensive utilization of resources as stipulated in this circular, the relevant data of products and services for comprehensive utilization of resources shall be submitted at the time of initial application according to the requirements and submitted to the competent tax authority for examination and record.

 

 

 

 

Li Shihai, Finance Department of Yadong company