61% of taxpayers assess the government ’s profits tax revenue at a two-tier tax rate and reduce it by 6 billion

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Written by: Yuan Shu

2020-05-20 12:55

In the 2017 Policy Address of the Government, the Propaganda Department introduced a two-tiered tax rate on profits tax, which aims to reduce the tax burden of enterprises and will be implemented in 2018/19. The Financial Services and the Treasury Bureau responded to the Legislative Council question today (20th) that in 2018/19, government profits tax revenue was about 156 billion yuan, 61% of taxpayers were assessed at a two-tier tax rate, and profits tax revenue was reduced by about 60 100 million yuan.

The Financial Services and the Treasury Bureau replied that the impact of the two-tiered profits tax system on government taxation was first reflected in the fiscal year 2019-20. The profits tax revenue for the year of assessment 2018/19 was approximately 156 billion yuan, and the profits taxpayers were approximately 146,000 Among them, about 89,000 profits taxpayers are assessed at a two-tier tax rate, accounting for about 61% of the total.

The Financial Services and the Treasury Bureau also pointed out that the government ’s profits tax revenue in the 2019-20 financial year has been reduced by about 6 billion yuan, accounting for nearly 4% of the total profits tax revenue. The government had expected that the implementation of the two-tier tax system would reduce tax revenue. About 5.8 billion, the Financial Affairs and the Treasury Bureau pointed out that this is similar to the previous estimate.

The Financial Services and the Treasury Bureau also stated that it had introduced the new measures to professional bodies and chambers of commerce, pointing out that the business community generally welcomed the measures and believed that it would help reduce the tax burden of enterprises and create a favourable business environment. However, because the two-tiered profits tax system has only been implemented for two years, there is currently no plan to review it.

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