Tax Relief Policies of the Agricultural Produces Processing Industry in China

Report edition: 2015 edition(1)
Finished time:
Document type: PDF
Total pages : 24
Language version: English
Published by CCM
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  • Introduction
  • Main contents
  • List of tables
  • List of figures

Description:

-Hot topic:

- Notice on Adjusting Tax Policy on Designated Denatured Ethanol Enterprises stipulated that since 1 Oct. 2011, recovering to collect the consumption tax to denatured fuel ethanol produced for the allocation of vehicle ethanol gasoline by using grain as raw material and the tax rate was 5%. Of which, from 1 Oct. 2011 to 31 Dec. 2011, the consumption tax rate for denatured fuel ethanol was 1%, and then it increased to 2% in 2012, 3% in 2013 and 4% in 2014 respectively. Finally, since 1 Jan. 2015, it collected at 5%. Till now, the operation of denatured fuel ethanol is hard. The cancelation of the tax relief is to insure the ample supply of corn to fill the grain inventory and the national grain safety. However, the cancelation did not mean crack down of corn processing enterprises. Judging from the uplifted export rebate from 1 Jan., 2015, 10 kinds of corn processed products will enjoy a better international competiveness.



- Notice on the Part of the Industry of Agricultural Produces in the Trial VAT Input Tax Deduction Method of the Ministry of Finance of China and the State Administration of Taxation of China has enforced by multiple provinces. How much of value-added tax deduction will change by figuring out the unit consumption. It is a motivation for enterprises to improve its technology to raise its resource utilization rate. It is also good for the environmental protection.



Tax policy is a kind of major measure to control the tendency of an industry. Generally, the industry will enjoy a rapid development with the pointed support. However, the burden will transfer to the government, leading to the less fiscal revenue. Under the limited resources, the government will adjust its policy. Therefore, there are several tax reforms, covering value-added tax, enterprise income tax and so on. How will the industry be changed will be analyzed by specific examples in here.



Purpose: Through this report, effect of tax relief on rice, sugar, tapioca and corn will be analyzed. Enterprises in these industries could find a potential industry by following the government support. Besides, current tax rate of agricultural produces processing will be introduced, respectively from those four industries, which will help enterprises to figure out its tax amount in China.



What to report: In this report, most of the valid policies about tax relief on agriculture processing will introduced from rice, sugar, tapioca and corn. The tax covers value-added tax, enterprise income tax, consumption tax, export rebate, and so on. Under each kind of tax, the tax relief policy will be introduced by each province. Following the policies, comprehensive analysis on how the tax relief policies influencing will be showed by cases or data.



Forecast: Enterprises will master the current tax rate and witness how the policies change the development of deep processing industry. Most importantly, enterprises will clearly know the attitude of the Chinese government towards some processing industries, which will offer a tool for them to find the next heat point.

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