Beijing's taxation authorities disclosed on Nov. 11 that in the first three quarters of 2018, 90,300 small and micro enterprises in the city enjoyed tax cuts and exemptions worth a total of 1.119 billion yuan (US$160.8 million), while 3,414 high-tech enterprises saved 8.955 billion yuan in taxes.

"The threshold for small and micro enterprises to enjoy 50 percent tax reduction was increased from 500,000 yuan to 1 million yuan, saving us 21,400 yuan in taxes, accounting for 60 percent of the total corporate income tax," said Guan Dehui, general manager of Beijing Xinruijin Technology Development Co. 

There are many private enterprises like Beijing Xinruijin Technology Development Co. According to the tax authorities, 934,000 applications were submitted by these small and micro enterprises to take advantage of the new value-added tax policies, with a total declared sales of 31.74 billion yuan and a total tax exemption of 959 million yuan.

According to a person in charge at the taxation department of Beijing, companies in Beijing can now process all tax-related procedures by visiting either the comprehensive service halls or the tax bureau’s official website. The city's 12366 tax service hotline also offers a “one-click access” to all tax-related matters, while an “easy tax procedures” list is issued to take care of the taxation procedures. The list covers tax items that can be completed in one go, including reporting, invoicing, declaration, case-recording and so on.

Ma Xiaoyi, chairman of a Beijing-based medical devices company, said that the company’s accountant used to visit the tax bureau at least twice a month only to buy invoices, but now they only need to submit the application online and wait for the couriers to make the delivery. 

In addition, in order to simplify the tax procedures for newly established companies, the tax department began to provide a “service package” to new taxpayers. The whole process of 10 tax-related matters can be taken care of in one go, and qualified companies can even open an account and collect invoices in one day. Nowadays, a business can be established in five days after all registration materials are submitted, compared to 22 days in the past, and the number of necessary administrative procedures has been consolidated to only four.

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