From July 4th to 6th, Premier Wen Jiabao is doing research in Jiang Su and Shanghai. Through relevant channels, reporter was informed that in an informal setting during the investigation in Shanghai, Wen Jiabao said that the modern service industry in Shanghai can be like that in Suzhou Industrial Park, which enjoys the policy of 15 percent preferential taxation.
Once implemented, enterprise income tax will be reduced from 25% to 15%, which will be unprecedented favorable for the enterprises of modern service industry in Shanghai; Shanghai will directly support the development of modern service industries.
By the end of 2006, the Suzhou Industrial Park has become a country to encourage advanced technology service companies in the "the pilot area" of this New Deal. Will Shanghai follow Suzhou, a modern service industry tax incentives for the pilot? How widely the coverage of the tax concessions will be? How will it lead more Shanghai modern service industry and the economy of the city? All these will constitute the future of the Shanghai shiny Aspect.
Voice of the industry already
For the recent investigation of frequent high-level leadership to the eastern part of the economists, analysts believe that with the Yangtze River Delta, the Pearl River Delta in the first half of the economic slowdown of the situation, the findings will determine the next few years or even the second half of the macro-control Direction.
The source said, during the research in Shanghai, after top leaders raise the idea of support modern service industries, may be the next state fiscal and tax departments to do the program, Shanghai is also expected to meet the fiscal and taxation departments for further investigation, the scope of investigation may be expanded to areas such as personal income tax .
In fact, it's already been the voice of in economic industry circles that the state support modern service industry in Shanghai. Jiang Ying, the person in charge of tax and business advisory in Deloitte Eastern Region said that if the government of Shanghai modern service industry and good news of tax adjust to the implementation of laws and regulations, the enterprises will not only bring substantial after-tax profits, it will also levels economic levers of Shanghai modern service industries and plays a role in promoting the escalation.
"It will be the military's determination that the Government must have a readjustment of the industrial structure of Shanghai." Sun Lijian, Vice president of Fudan University School of Economics told reporters that if the policy can not be effectively Support, the modern service industry in general has high-cost, high-risk characteristics of the market, long-term industrial investment will be focused on low-risk markets such as manufacturing, but still low-end of the industry value chain. Shanghai's modern service industry to give special preferential policies, enterprises will increase the industry's ability to resist risks, thus increase market activity.
For the slowdown in economic growth trends in the first half of this year Shanghai, market participants have predicted that Shanghai's GDP growth isn't likely to breakthrough in double digits for more than 10 years. Industrial upgrading, and to seek new points of economic growth, has become urgent and requires solution in Shanghai's development issues.
"In addition, support policy for modern service industry in Shanghai, and foreign competition in the financial centre needs." Sun Lijian said, compared with London, New York, and other global financial centre, Shanghai's modern service industry has too heavy tax burden, which to some extent impact on the scale of investment in Shanghai's industrial and business sectors of the anti-risk capability. And compared to the global financial centre, Shanghai's added value of modern service industry is obviously low.
In the ranking of global international financial centre assessment made by the "Global financial centres index" magazine in 2008, Shanghai only ranked 31, ranking slightly lower, which fully reflects the new financial centre and the high sensitivity of immature.
How to define an Aspect
"I think this policy will not be implemented shortly. First of all, for the definition of modern service industry itself by the market is very controversial." Luo Haijiao, Shanghai Federation of the Secretary-General modern service industry, said that the promoting the "rule of modern service industry in Shanghai " will be introduced at the end of this month, but it's not related to the enterprise income tax preferences topic.
On December 31, 2006, the Ministry of Finance, State Administration of Taxation, the Ministry of Commerce, Ministry of Science and Technology jointly issued the "notice to encourage the advanced technology service enterprises pilot policy issues related to the work in the Suzhou Industrial Park," which said, Suzhou Industrial Park should expand high-tech enterprises that the scope of the park within the required conditions in the software development and services, product research and development and industrial design services, information technology research and development services, information technology, technical services and outsourcing business process outsourcing technology, Advanced service enterprises can be identified as high-tech enterprises, and to enjoy the related tax benefits.
In April this year, the Ministry of Science and Technology, the Ministry of Finance and State Administration of Taxation jointly issued the " management approach of high-tech enterprises", according to new definition for high-tech enterprises to enjoy tax incentives. Such as high-tech enterprises must have "registered enterprises in China, nearly three years independent research and development, the transferee, the recipient, such as mergers and acquisitions, or through more than five years of exclusive license to its main product (service) in the core technology with independent intellectual property rights" and other conditions. Last major high-tech enterprises was based on products, and new identify ways has expanded to services.
Jiang Ying, of Deloitte, the high-tech services will be included in the field of high-tech enterprises, is in itself a meaningful breakthrough. In the define of Shanghai's high-tech enterprises within the region in the future, it will be aspects both for whether it will be further on the experience of pilot in Suzhou, and some high-tech and high value-added service industries threshold of further expansion.
She said, including financial services, logistics, consulting, and other high value-added of the broad sense of the modern service industry, the high-tech enterprises will also be included in the scope of accreditation to enjoy corresponding preferential tax policies, this will be expectation of the industry.
Tax rate is not the "master key"
Jiang Ying has a similar view. She said that to the modern service sector enterprises, their income taxes is not the largest one in the business tax burden. Because of the country's tax laws and regulations enacted in the beginning, there has been no such diverse forms of current economic patterns and mode of cooperation, and there has been some laws and regulations incompatible with the actual development of the situation. If sales tax collection processes, it will impose unreasonable conditions that the multi-party cooperation for the project may double or even triple the sales tax.
"Many similar examples can also be cited." Jiang believes that if the policy will tilt to the modern service industry in Shanghai, the intention of improving the current tax laws and regulations and in some business practice which does not match with the requirements of some companies is more affordable than reducing corporations' income taxes.
