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Nov. 13, 2014
Nov. 13, 2014
No. 162, 2014, the Wuxi Municipal People's Government
Limit of publicity
Jiangsu Wuxi Municipal Bureau of Quality and Technology Supervision
Form of publicity
Mode of publicity
Range of publicity
The whole society
Period of validity
Procedures of publicity
Publicity after being drafted by the department and approved by relevant offices
Theme (the 1st level)
Market supervision, safety and production supervision – quality supervision
Economy, management, adjustment
People’s governments of all cities and districts, and committees, offices, bureaus and subordinate units in Wuxi,
For further encouraging and supporting individual businesses in the whole city to become bigger and stronger, guiding them to transform towards modern enterprises, constantly promoting market competitiveness of private economy and enhancing development potential, the following implementation views on individual businesses in the whole city transforming and upgrading into enterprises (hereinafter referred to as individuals transforming into enterprises) are hereby put forward.
I. Guiding Ideology
Deeply and practically put the spirit of the 18th National People’s Congress of the Communist Party of China (CPC) as well as the 3rd and 4th Plenary Sessions of the 18th Central Committee of the CPC into practice, in the light of the requirements regarding transformation and upgrade engineering, keep a foothold on the present, look ahead to the future, establish and perfect individuals transforming into enterprises policy support system, fully support individual businesses with certain scale to transform and upgrade into enterprises, continuously heighten competitiveness of private economy in business credit, operation field, brand effect and other aspects, further optimize economic structure, industrial structure and market major structure of the whole city, and promote healthy and fast development of small and micro-type market entities in Wuxi.
II. Basic Principles
(i) Voluntary main bodies. Sufficiently respect independent option of individual businesses, pay attention to stimulating internal impetus in transformation of individual businesses, take voluntary will as premise, accelerate propulsion of individuals transforming into enterprises, not conduct compulsive transformation, and not assign hard tasks.
(ii) Paying attention to guidance. Governments at various levels and related departments shall further transform ideas, practice service aim, eliminate frame restriction, pay attention to combination of market guidance and policy stimulation, initiatively and actively work, and try hard to realize objectives of bringing more benefit to main bodies of transformation and not adding burden on transformation enterprises.
(iii) Classified guidance. Follow market discipline, combine with industrial characteristics, and proactively and steadily boost. For main bodies that possess relatively strong strength and mature conditions, accelerate promoting transformation; for those that possess certain strength but have scruple, strengthen publicity and support; and for those with relatively small scale but relatively larger potential and good growth, lay emphasis on care and cultivation.
(iv) Standardizing according to law. Not only consider legality of policies, but also focus on convenience and rapidity; and speed up handle various relations and problems referred to in individuals transforming into enterprises, practically maintain legitimate rights and interests of main bodies in transformation.
III. Key Emphases in Work
(i) Those that shall be registered as enterprises in accordance with relevant laws, rules or industrial stipulations but still carry out operation in the organizational form of individual businesses at present shall be transformed and upgraded into enterprises within a definite time.
(ii) For industries with good development prospect and operators owning upgrade demand, guide and help them to transform and upgrade into enterprises; and for individual businesses with self-owned brands, encourage and support them to transform and upgrade into enterprises.
(iii) For individual businesses that engage in production, processing, manufacture and other industries or commerce and service industry with comparative scale and realize certain scale in area of operation places and amount of employees, encourage and support them to transform and upgrade into enterprises.
(iv) For individual businesses confirmed as general taxpayers by tax departments, actively guide them to transform and upgrade into enterprises.
(v) For individual businesses considered to need to be focused on upgrade by local governments and related departments, encourage and support them to transform and upgrade into enterprises.
IV. Policies Support
(i) Industrial and commercial registration policy
1. Individual businesses that have transformed into enterprises could continue to use characters in their names before transformation, but their names after transformation shall conform to relevant stipulations concerning registration management on enterprise names.
2. If domiciles of enterprises are the same as original operation places of individual businesses, evidentiary materials of enterprise domiciles could not be submitted.
3. For individual businesses applying for individuals transforming into enterprises, if substantive examination and approval items stay the same and environmental protection, health, quality supervision, public security, food and drug administration and other administrative licenses are in force, they could deal with registration on transforming into enterprises of individual businesses, and then handle reissuance procedures of licenses by pre-licensing departments.
4. Registration for individuals transforming into enterprises will be exempted from paying registration fees.
(ii) Tax policy
1. After individuals transforming into enterprises, if annual taxable sales amount of taxpayers conforms to small-scale taxpayer standard prescribed by the Ministry of Finance of the People's Republic of China and the State Administration of Taxation, implement simple way of calculating payable tax amounts in the light of sales amount and levy rate, with added-value tax levy rate of 3%.
2. For enterprises whose annual sales amount doesn’t exceed 30,000 yuan among small-scale taxpayers of added-value tax, temporarily exempt from added-value tax; and for enterprises whose annual business volume doesn’t exceed 30,000 yuan among taxpayers of business tax, temporarily exempt from business tax.
3. For small-scale low-profit enterprises engaging in national non-restricted and banned industries and conforming to relevant conditions, reduce levying enterprise income tax by 20% tax rate:
(1) As for industrial enterprises, annual taxable income doesn’t exceed 300 thousand yuan; employees don’t exceed 100 people; and total asset don’t exceed 30 million yuan;
(2) As for other enterprises, annual taxable income doesn’t exceed 300 thousand yuan; employees don’t exceed 80 people; and total asset don’t exceed 10 million yuan.
4. From January 1, 2014 to December, 31, 2016, for small-scale low-profit enterprises whose annual taxable income is less than 100 thousand yuan (including 100 thousand yuan), subtract 50% income and then include in taxable income, and charge enterprise income tax according to 20% tax rate.
5. After individuals transforming into enterprises, taxpayers whose taxable sales amount of the last year is not more than 5 million yuan could apply for adopting the way of checking and ratifying taxable income rate to check, ratify and levy enterprise income tax, and tax authorities shall confirm applicable taxable income rate according to relevant policy stipulations.
6. Enterprises that execute individuals transforming into enterprises, conform to prescribed conditions in No. 6 Document, 2014 of the Jiangsu Local Taxation Bureau and really have difficulty in paying land use tax could deal with deduction and exemption according to prescribed procedures.
7. Enterprises executing individuals transforming into enterprises shall be exempted from within 3 years and halved flood protection security funds in the 4th and 5th years from the day of transforming into enterprises.
8. For fixed assets acquired by taxpayers executing individuals transforming into enterprises during individual operation, if without original valid certificates to prove its value, conduct accounting and management on them according to the value confirmed in assessment reports issued by qualified intermediary organs and after reporting to tax authorities for confirmation.
(iii) Fiscal policy
1. Carry out proper reward and subsidy on individuals transforming into enterprises. All localities could, in combination with actual situations, give proper subsidy to enterprises executing individuals transforming into enterprises and paying local-level tax revenue exceeding cardinal number of the last year within 3 years. Towns (residential streets) realizing prominent efficiency in individuals transforming into enterprises shall be given certain reward. Specific reward and subsidy measures, objects, standards and ways will be determined by cities (counties) and districts on their own.
2. Among business policy fund projects declared by enterprises executing individuals transforming into enterprises and possessing import-export operation right within 3 years after transforming into enterprises, eligible ones could be given preferential arrangement.
(iv) Land and resources house property policy
When land use right certificate and property ownership certificate are transferred (or altered) from individual businesses to upgraded enterprises' names, exempt from measurement, assessment, transfer (change) and other fees.
(v) Financial policy
1. Financial institutions shall actively give loan support to enterprises executing individuals transforming into enterprises, and reasonably confirm interest rate level and loan period, expand range of pledge guaranty and innovate repayment modes according to production and operation needs of enterprises, money flow and other features. For small-scale low-profit enterprises conforming to national industrial policies and credit policy requirements, possessing relatively good development prospect and credit but temporarily having difficulties, slightly increase or not increase loan interest rate to the greatest extent. The Wuxi Municipal Commission of Economy and Information Technology and other departments shall include eligible enterprises executing individuals transforming into enterprises in small and micro enterprises support category.
2. Financial institutions shall enhance credit approval efficiency of enterprises executing individuals transforming into enterprises. Under the premise of meeting specifications and being able to control risks, provide convenience for enterprises executing individuals transforming into enterprises in changing bank settlement accounts as far as possible.
3. People's bank shall incorporate credit aid by financial institutions towards enterprises executing individuals transforming into enterprises in credit policy evaluation of small and medium-sized enterprises.
(vi) Other preferential policy
After individual businesses are transformed into enterprises, if their administrative licensing is within period of validity, departments shall give approval and exempt from any fee when dealing with change (or transfer of ownership) registration.
V. Working Requirements
(i) Deepening understanding and reinforcing leadership. People's governments of cities (counties) and districts as well as related departments shall fully understand the practical significance and long-term roles of individuals transforming into enterprises towards sustainable economic development in Wuxi. The Wuxi Municipal People’s Government shall establish a leading group on individuals transforming into enterprises with main leader as head, leaders in charge as deputy chiefs and relevant principals of the Wuxi Municipal Bureau of Industry and Commerce, the Wuxi Municipal Commission of Economy and Information Technology, the Wuxi Municipal Bureau of Finance, the Wuxi Municipal Office, SAT, the Wuxi Local Taxation Bureau, the Wuxi Municipal Bureau of Statistics, the Wuxi Municipal Bureau of Human Resources and Social Security, the Wuxi Municipal Bureau of Housing Guarantee and Real Estate Management, the Wuxi Municipal Bureau of Land and Resources, the Wuxi Municipal Financial Office and other departments as members; and shall set up and perfect leading group's regular meeting system, departmental negotiation and linkage mechanism, business information regular record and notification mechanism and other daily working systems. Office of the leading group will be stationed in the Wuxi Municipal Bureau of Industry and Commerce to take charge of planning and coordinating daily work. All cities (counties) and districts shall form corresponding leading groups, formulate implementation schemes, confirm working objectives and put assignment of responsibilities into practice.
(ii) Simultaneously grasping and intensifying services. Individuals transforming into enterprises is a systems engineering, and people’s governments of all cities (counties) and districts as well as related departments shall closely coordinate and synergistically propel, and form working pattern in which governments take the lead in organization and departments simultaneously grasp. Industry and commerce departments shall do well in publicity and launching. Statistical departments shall well conduct investigation and verification on enterprises, and include in basic enterprise directory without delay. Reinforce statistical business guidance and training on enterprises executing individuals transforming into enterprises, supervise and urge enterprises to strengthen reinforce information record, statistical standing book production and other basic work construction, and guarantee completeness of enterprise information and accuracy of data. Other related departments shall give full play to their own functions, research and formulate relevant supportive measures, and jointly drive successful conduct of individuals transforming into enterprises.
(iii) Strengthening publicity and creating atmosphere. All localities and related departments shall make full use of network, television, broadcast, newspaper and other media, carry out active and effective publicity, further deepen understanding of all sectors of society towards boosting individuals transforming into enterprises and developing private economy, and unceasingly stimulate enthusiasm of individual businesses on independent transformation. Timely summarize and popularize successful experience in individuals transforming into enterprises, firm confidence of individual businesses in transformation and upgrade, and strive to resolve worries about future consequences.
The Wuxi Municipal People's Government
November 5, 2014