In order to improve the tax service and enhance the tax management, a new guideline has been issued by the State Administration of Taxation in November 2015. Such guideline enables companies and other organizations to apply for preferential income tax rates through easier tax filing. The guideline includes 35 categories of such taxpayers covering, for instance, non-profitable income of approved non-governmental organizations, animation studios producing original work and companies that have suffered as a result of natural disasters and startups in poor areas in the Xinjiang region.
Under the guideline, tax filing is only required for initial application. If the eligible companies or other taxpayers do not violate the conditions of the preferential tax rates, no tax filing is required. In addition, instead of filing a wide range of hard-copy documents and forms, eligible companies and other taxpayers can choose to file forms to secure lower tax rate with local tax offline online. For those tax exemptions that have been approved or finished filing, no further tax filing is required under the new guideline.
In order to increase the vitality of the market and lighten the burden of enterprises, further simple guideline and tax policy can be expected in the future.