Private Enterprises Expect Tax Incentives To Attract Private Capital To Participate In Financial Reform.

Recently, the State Council formally approved the establishment of China (Shanghai) free trade pilot area (P).

Although the relevant rules have not yet been disclosed, it is certain that the reform of finance, taxation, finance, foreign exchange and trade in the process of the construction of the free trade area will bring substantial benefits to the development of the private enterprises.

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< p > < strong > the positive effect is not less than WTO < /strong > /p >

< p > the free trade area proposed by Shanghai is not a free trade agreement signed by bilateral and multilateral countries or regions. It is an open initiative implemented by a country on its own initiative and unilaterally implemented.

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The so-called "freedom" in the free trade area (P) refers to the freedom of trade, logistics and customs in a specific area. The core is to speed up the movement of goods in and out, personnel flow, capital flow and information pmission through deregulation.

Compared with "within the borders", this kind of "outside the territory" can undoubtedly reduce trade costs to a greater extent and promote trade and exchanges.

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According to the incomplete statistics of scholars, there are more than 1200 free trade areas around the world, which may be different in terms of specific management, but there are five common characteristics: < /p > p

< p > first, the function of free trade area is comprehensive development. Its basic functions are import and export trade, re export trade, warehousing, business or industrial simple processing, commodity display, and financial, freight and other service trade functions.

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< p > two is free trade area management and legal system guarantee is complete and perfect.

Countries and regions should first legislate and set up districts, and ensure the healthy development of free trade zones with strict laws and regulations.

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< p > three is the authority of the free trade area management authority.

Countries and regions have specialized agencies for management.

The implementation of unified management in the free trade area is highly efficient, and the mandate is generally similar.

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< p > four is to attach importance to preferential policies and have their own characteristics.

Exemption from customs duties and other tax incentives to encourage foreign businessmen to invest.

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< p > five is the convenience of customs supervision in the free zone.

Customs agencies are mostly streamlined, very convenient to manage, simplify customs supervision procedures, and avoid complicated routine procedures. They implement "first line release", "second line control", "free zone", "control of bayonet" and "no matter what happens".

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Huang Haizhou, chairman of the China International Capital Co, said that the establishment of the Shanghai free trade area is of little significance. If done well, the effect to China will not be lower than that of WTO. P

Huang Haizhou said that the developed countries led by the United States are formulating some new trade plans. In some new trade rules negotiations, China is excluded, such as TPP and TPZ, and its rules are much higher than those of WTO.

Therefore, China must participate in the formulation of Global trade planning on a higher standard.

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< p > < strong > private enterprises send tax preference to expectation < /strong > < /p >.

< p > a survey report released by Shanghai Federation of industry and Commerce in August shows that the comprehensive tax and fee burden of private enterprises is still heavy.

In the first half of this year, taxes paid by private industrial enterprises above Designated Size in Shanghai increased by 9.3% compared with the same period last year, while the total profit dropped by 6.2%.

In the two quarter of the sample survey of private small and medium enterprises, nearly half of the total tax paid by enterprises increased year by year, while at the same time, the proportion of net profit increased by 40%.

The voice of small and micro enterprises to increase the support of tax concessions is also increasing.

Judging from the survey, the proportion of enterprises wishing to implement preferential tax policies is 76%, much higher than that of other enterprises.

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< p > and the establishment of the Shanghai free trade area will undoubtedly grant tax relief to private enterprises in the free trade area.

It is reported that the Shanghai free trade zone will promote tax innovation, which will include income tax on some enterprises in the region from 25% to 15%.

Jiang Feng, executive director of Yangzhou new phoenix company, said, "if the income tax is really down to 15%, it will be a great benefit for enterprises."

UBS also believes that the preferential tax policy will help expand the re export trade and offshore trade in Shanghai, and make a direct positive impact on the performance of the relevant enterprises.

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< p > < strong > attracting private capital to participate in financial reform < /strong > /p >

< p > recently, the Shanghai municipal government explicitly stated in implementing the implementation plan of "the ten financial states" that Shanghai should combine the requirements of the construction of the free trade pilot area of China (Shanghai), deepen reform and open wider to the outside world, put forward the plan and operation method with Shanghai characteristics, strive for a pilot test in Shanghai, so that the deployment of the national financial reform, opening up and innovation will come first in Shanghai.

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< p > put forward the above implementation plan. First, we should actively strive for the routine operation of securitization of credit assets.

The two is to promote the development of cross-border RMB settlement business and expand the use of RMB in trade, investment, insurance and other fields.

The three is to study and promote the pilot work of personal foreign direct investment in Shanghai.

Four, we should strive to expand the scope of participants in net clearing of interbank foreign exchange market.

Five, we should actively cooperate with the policy research of private capital entering the financial industry, and explore the establishment of private banks and financial leasing companies and Consumer Finance Companies with private capital at their own risk.

Six, we should actively cooperate with policy research, expand the right to write off bad loans, and explore the routines of the pfer of non-performing loans.

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< p > experts said that the FTA's first try in financial innovation is conducive to promoting China's financial reform process in many aspects such as interest rate liberalization, exchange rate marketization, convertibility of RMB capital items and so on.

In particular, "actively cooperate with the policy research on private capital entering the financial industry, and explore private banks and financial leasing companies and Consumer Finance Companies launched by private capital" will attract the enthusiasm and creativity of the vast number of private capital.

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< p > < strong > the siphon effect of the Yangtze River Delta < /strong > /p >

< p > the Yangtze River Delta region has the most direct influence on Shanghai after the establishment of the free trade area.

With the completion of the expressway and the acceleration of the railway, the Yangtze River Delta has formed an economic circle for one hour.

It can be said that the Yangtze River Delta is near the water tower and gets the first month.

In the most developed areas of China's private economy, including private enterprises and multinational corporations, it is possible to make full use of the Shanghai free trade area as a new platform for the development of enterprises.

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< p > in recent years, the foreign trade of Shanghai, Zhejiang and Jiangsu provinces has been increasing year by year. The establishment of Shanghai free trade zone is undoubtedly a good news for Jiangsu, Zhejiang, Shanghai and private enterprises, and they will be faster, more convenient and cheaper to develop export-oriented economy.

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< p > Wang Wei, deputy director of the Institute of world economics, Jiangsu Academy of Social Sciences, believes that the establishment of the Shanghai free trade area will have an obvious siphon effect on Jiangsu's import and export. The competition between Jiangsu and Zhejiang and Shanghai will attract more competition.

Because the Shanghai free trade area implements the free import and export of goods, no quota restrictions, no import and export duties, while relaxing foreign exchange control and other preferential policies, plus Shanghai's superior geographical location, developed modern service industry and efficient government public services, the multinational corporations in the Yangtze River Delta region may prefer to pport products to the global distribution center of Shanghai free trade area.

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