In daily life, in addition to providing insight into tax dynamics through the release of tax related documents, the release of hot news and typical cases also reveals tax related information. "Tax Eyes Watch News" aims to extract and interpret tax related information from news, tax related legal documents, or major tax cases, and share it with readers, hoping to be beneficial to readers.

1、 2022 National Financial Work Conference: Improving and Extending Tax Support Policies

On December 29, 2022, the National Financial Work Video Conference was held in Beijing. The meeting emphasized that the positive fiscal policy in 2023 should be strengthened and effective, and play a more direct and effective role. The key points are to grasp five aspects: First, improve the tax support policy. According to the actual situation, the continuation and optimization of the extension should be focused on alleviating the difficulties of enterprises. The second is to strengthen the overall planning of financial resources, optimize the combination of financial deficit, special debt, discount interest and other tools, appropriately expand the scale of financial expenditure, and provide financial support for the implementation of major national strategic tasks. The third is to vigorously optimize the expenditure structure, adhere to the principle of maintaining balance, actively support key areas such as scientific and technological breakthroughs, rural revitalization, regional major strategies, education, basic livelihood, and green development, strictly control general expenditures, and continuously improve expenditure efficiency. Fourth, balance the level of financial resources between regions, continue to increase central to local transfer payments, improve the long-term financial security mechanism at the county level, and promote the equalization of basic public services. Fifth, we will strictly enforce financial discipline, standardize the management of fiscal revenues and expenditures, resolutely stop illegal and illegal borrowing, and effectively prevent financial risks.

Legal analysis: Although there are no documents to extend the tax preferential policies that expire on December 31, 2022, according to the spirit of the 2022 National Financial Work Conference, the existing tax preferential policies will continue and will continue to be optimized this year.

2、 The "Value Added Tax Law (Draft)" was submitted to the 38th Session of the Standing Committee of the 13th National People's Congress for first consideration

On December 27, 2022, the "Value Added Tax Law (Draft)" was submitted to the 38th Session of the 13th National People's Congress Standing Committee for first consideration. The legislation generally follows the idea of shifting the tax system, maintaining the current tax framework and tax burden level basically unchanged, and upgrading the Provisional Regulations on Value Added Tax and relevant policies and regulations into law.

Legal analysis: Currently, 12 of China's current 18 tax categories have completed legislation. After multi-step reform, China has basically established a modern value-added tax system, laying a solid institutional foundation for value-added tax legislation. As the largest tax category in China, the pace of value-added tax legislation is gradually accelerating. The introduction of the value-added tax law in the future will greatly promote the construction of tax legalization in China.

3、 Taxpayers who produce and sell civil jet aircraft with an unloaded weight greater than 25 tons will enjoy preferential tax policies

On December 30, the Announcement of the Ministry of Finance and the State Administration of Taxation on the Applicable Policies for Value Added Tax on Civil Aircraft (Announcement No. 38 of the Ministry of Finance and the State Administration of Taxation in 2022) was issued, which stipulates that:, "From the date of issuance of this announcement to December 31, 2023, taxpayers producing and selling civil jet aircraft with an unloaded weight greater than 25 tons shall comply with Articles 2, 5, and 7 of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Tax Policy for Civil Aviation Engines, New Regional Airplanes, and Large Passenger Airplanes (Announcement No. 88 of the Ministry of Finance and the State Administration of Taxation in 2019) "The relevant provisions of Article 1 of the Announcement of the Ministry of Finance and the State Administration of Taxation on Extending the Implementation Period of Some Tax Preferential Policies (Announcement No. 6 of the Ministry of Finance and the State Administration of Taxation in 2021) shall be implemented."

Legal analysis: According to the provisions of the above three documents, before December 31, 2023, taxpayers who produce and sell civil jet aircraft with an unloaded weight greater than 25 tons will enjoy a tax preference of "temporarily reducing the value-added tax by 5%, and refunding the value-added tax remaining at the end of the period due to the production and sale of new regional aircraft."

4、 The State Council report discloses the issue of lax collection and management of individual income tax. The tax authorities have recovered 3.772 billion yuan in taxes and overdue fines

On December 28, 2022, at the 38th meeting of the Standing Committee of the 13th National People's Congress, entrusted by the State Council, Wang Benqiang, Deputy Auditor General of the National Audit Office, made a report by the State Council on the rectification of issues identified in the implementation of the central budget and other financial revenue and expenditure audits in 2021. The report stated that in the area of tax collection and management audits, 154.306 billion yuan had been rectified and 259 people had been punished. One is the insufficient release of tax incentives and dividends. The tax authorities have handled tax refunds of 3.42 billion yuan for 8446 enterprises that do not enjoy tax incentives such as R&D expenses plus deductions. Regarding the issue that taxpayers do not enjoy the tax deferral benefits for small, medium-sized, and micro enterprises in the manufacturing industry, the State Administration of Taxation has upgraded and improved the functions of the information system, and taxpayers can receive pop-up reminders when filing. The second is the lax collection and management of individual income tax. The tax authorities have recovered 3.772 billion yuan in taxes and overdue fines, filed cases and investigated 13 enterprises, and held 2 individuals accountable. Regarding the issue of illegal tax rebates to high-income individuals in the name of financial support, relevant local authorities have issued documents to cancel the direct link between financial support policies and tax payment. The third is the issue of regulating income. 147.14 billion yuan of deferred tax has been paid into the national treasury; Among the excessive taxes and fees collected, 257 people have been held accountable for returning those that have falsely increased their income, while those that have been collected in advance have been refunded for offsetting taxes and fees.

Legal analysis: According to the frequent tax cases in the past two years, the tax authorities may make adjustments to the tax preferential policies granted to enterprises or natural persons due to investment attraction before the expiration of the preferential policies, resulting in the failure to deliver the promised preferential policies, and even bringing tax risks to taxpayers. Therefore, when investing, enterprises should conduct a professional assessment of the tax policies granted by the local government to prevent the promised preferential policies from being unfulfilled and to prevent their own tax risks.

5、 Forest vegetation restoration fees and grassland vegetation restoration fees are transferred to the tax department for collection

On December 26, 2022, the Ministry of Finance issued the "Notice of the Ministry of Finance on Transferring Forest Vegetation Restoration Fees and Grassland Vegetation Restoration Fees to the Tax Department for Collection" (CS [2022] No. 50), which stipulates that from January 1, 2023, forest vegetation restoration fees and grassland vegetation restoration fees will be transferred to the tax department for collection.

Legal analysis: After the forest vegetation restoration fee and grassland vegetation restoration fee are transferred to the tax department for collection, the collection scope, object, standard, share, exemption, and other policies remain unchanged. If an enterprise has unpaid fees that should be paid, it should report to the tax department for payment. If a refund is required, it should apply to the tax department.

6、 The State Administration of Taxation issued the "Opinions on Launching the 2023" Spring Wind Action for Convenient Taxation "

On January 1, 2023, the State Administration of Taxation issued the "Opinions on Carrying out the 2023" Spring Breeze Action for Convenient Tax Handling "(SFSF [2023] No. 1). The" Opinions "first introduced the first 17 measures in six areas, namely," improving demand response and quality "," improving policy implementation and efficiency "," refining service archives "," speeding up intelligent tax handling "," streamlining and upgrading processes ", and" standardizing and improving law enforcement. ". In terms of improving the quality of demand response, two measures have been introduced, including organizing and conducting the nationwide collection of taxpayers' needs, and deepening the pilot project of "direct tax delivery"; In terms of policy implementation and efficiency improvement, three measures were introduced, including strengthening the promotion and guidance of corporate income tax preferential policies, broadening the scope of priority tax refund personnel for the final settlement and payment of individual income tax, and deepening the 32nd National Tax Promotion Month; In terms of fine service upgrading, three measures have been introduced, including giving full play to the role of tax big data to assist enterprises in resuming work and production, exploring the provision of intelligent response services to natural persons as a priority, and conducting visual Q&A pilot projects for technology and applications.

Legal analysis: Since the launch of the "Spring Wind Action for Convenient Tax Handling" in 2014, the State Administration of Taxation has launched a total of 197 innovative service measures in 54 categories by the end of 2022. The first batch of measures this year focused on the "urgent needs and anxieties" of taxpayers, first introducing 17 measures for convenient tax payment in six aspects, and later introducing a series of follow-up measures in batches to effectively solve practical problems for taxpayers and create a high-quality tax business environment, Taxpayers can wait and see.