The State Council finally took action. Premier Li Keqiang stated in the government work report at the fourth meeting of the 12th National People ’s Congress that from May 1st, the “camp reform will be fully implemented” and the pilot scope will be extended to the construction industry, The real estate industry, financial industry and life service industry shall include the value-added tax included in the newly added real estate of all enterprises into the scope of deduction to ensure that the tax burden of all industries will not be reduced or increased.
The health service industry (pharmaceutical industry) is listed in the "Twelfth Five-Year Plan of the State Council on the Development of the Printing and Distribution Service Industry" and the medical device industry is a sub-field of the pharmaceutical industry, which means that the medical device industry can also enjoy The government carried out a policy bonus of "VAT reform".
Regarding business reforms, Lou Jiwei, Minister of Finance of the People's Republic of China, made the following statement on March 7: Business tax is a tax levied according to the turnover and transaction value of each enterprise, which prevents enterprises from optimizing their business model.
Therefore, in order to get through this deduction chain and make it truly a value-added tax, it is necessary to insist on the direction of value-added taxation at every link. This year is a hard task. After doing so, it is very helpful to support the development of the service industry and the transformation and upgrading of the manufacturing industry.
So, what benefits can business reform bring?
reduce costs
The basic idea that Lou Jiwei said is to open up the deduction chain of turnover and transaction value, and convert business tax into value-added tax. The biggest feature of this business reform is the reduction of repeated tax payments, which is conducive to reducing tax burdens for enterprises.
The business tax costs that medical device companies normally incurred in the past may not incur any actual value-added tax costs after the business reform.
Let's first look at a simple example:
A non-profit hospital cooperates with B investment company. B investment company provides a CT for A non-profit hospital. CT examination fee income is divided into five and five.
Then, the investment income from the transfer of B investment company ’s equipment to the hospital should be subject to business tax under the "service industry-leasing" subject.
After the business reform, the VAT can be deducted, which saves a lot of costs for the enterprise.
Moreover, the company's daily miscellaneous expenses: such as meals, communication fees, accommodation fees, advisory fees, consulting fees, etc., were previously included in the cost, and can now be deducted from VAT special invoices, which will greatly reduce operating costs.
Business growth
Generally, taxpayers can issue special VAT invoices independently, and customers will be more willing to purchase products of mechanical enterprises in order to realize the deduction of input tax. Mechanical enterprises can also obtain stable customers and share new business opportunities brought by VAT.
At the same time, after the mechanical enterprise becomes a VAT taxpayer, the related party transactions within the group will no longer repeatedly pay business tax, and the outsourcing services purchased by the company can also be included in the input deduction, which is conducive to the refinement and specialization of the enterprise The division of labor and cooperation is conducive to the development of enterprises to higher goals.
The health service industry (pharmaceutical industry) is listed in the "Twelfth Five-Year Plan of the State Council on the Development of the Printing and Distribution Service Industry" and the medical device industry is a sub-field of the pharmaceutical industry, which means that the medical device industry can also enjoy The government carried out a policy bonus of "VAT reform".
Regarding business reforms, Lou Jiwei, Minister of Finance of the People's Republic of China, made the following statement on March 7: Business tax is a tax levied according to the turnover and transaction value of each enterprise, which prevents enterprises from optimizing their business model.
Therefore, in order to get through this deduction chain and make it truly a value-added tax, it is necessary to insist on the direction of value-added taxation at every link. This year is a hard task. After doing so, it is very helpful to support the development of the service industry and the transformation and upgrading of the manufacturing industry.
So, what benefits can business reform bring?
reduce costs
The basic idea that Lou Jiwei said is to open up the deduction chain of turnover and transaction value, and convert business tax into value-added tax. The biggest feature of this business reform is the reduction of repeated tax payments, which is conducive to reducing tax burdens for enterprises.
The business tax costs that medical device companies normally incurred in the past may not incur any actual value-added tax costs after the business reform.
Let's first look at a simple example:
A non-profit hospital cooperates with B investment company. B investment company provides a CT for A non-profit hospital. CT examination fee income is divided into five and five.
Then, the investment income from the transfer of B investment company ’s equipment to the hospital should be subject to business tax under the "service industry-leasing" subject.
After the business reform, the VAT can be deducted, which saves a lot of costs for the enterprise.
Moreover, the company's daily miscellaneous expenses: such as meals, communication fees, accommodation fees, advisory fees, consulting fees, etc., were previously included in the cost, and can now be deducted from VAT special invoices, which will greatly reduce operating costs.
Business growth
Generally, taxpayers can issue special VAT invoices independently, and customers will be more willing to purchase products of mechanical enterprises in order to realize the deduction of input tax. Mechanical enterprises can also obtain stable customers and share new business opportunities brought by VAT.
At the same time, after the mechanical enterprise becomes a VAT taxpayer, the related party transactions within the group will no longer repeatedly pay business tax, and the outsourcing services purchased by the company can also be included in the input deduction, which is conducive to the refinement and specialization of the enterprise The division of labor and cooperation is conducive to the development of enterprises to higher goals.