Beijing has implemented a series of preferential tax policies in April, including issuing value-added tax (VAT) credit refunds on a large scale, to improve the cash flow of enterprises, according to the Beijing Municipal Tax Service. 

According to a circular released by the Ministry of Finance and the State Taxation Administration, greater efforts are required for refunding outstanding VAT credits to micro and small enterprises, and to enterprises in the manufacturing industry. The coverage of the policy to fully refund newly added credits to enterprises in advanced manufacturing sector on a monthly basis will be expanded, and outstanding VAT credits of related companies will be refunded in one lump sum. 

The policy is expected to benefit 153,000 taxpayers in Beijing, according to an official from the Beijing Municipal Tax Service. The official also said that a mechanism has been set up to coordinate the implementation of the VAT credit refund program, in order to ensure that the refunds will go directly to market entities.

In addition to the VAT credit refund, Beijing's tax-relief policies also include tax cuts, exemption, postponement, and rebates, with a focus on micro, small, and medium-sized enterprises. 

According to another notice recently issued by the city, from 2022 to 2024, Beijing will provide a 50% discount for six local tax categories and two types of fees for small and micro businesses and individually-owned businesses.

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