Thursday , January 21 2021

State Council's Top Meeting: Start of Personal Incentives for Venture Capital Companies next year – News – Global IC Trade starts here – ICEach.com



Summary: Based on preferred venture capital venture policies to invest in the seed period and start-up period, technology-based companies are deducted from taxable income by 70% of the investment amount from 1 January next year. A venture capital company may choose to be accounted for by a single investment fund. The individual's equity transfer and dividend income from the Fund are subject to personal income tax at a rate of 20% or the total accounting of the venture capital company's annual income is selected. Based on the company's income, the person calculates personal income tax after 5% -35% excess progressive tax rate. The implementation period for the above policy is provisionally set for five years.

Li Keqiang presided over the State Council

Decides to implement tax cuts to promote risk capital development and increased support for entrepreneurial innovation

Deployment accelerates the promotion of agricultural mechanization and agricultural machinery and equipment to help rural areas to revive the development of agriculture, rural and farmers

Passes the results of the 2018 National Science and Technology Awards Review

Prime Minister Li Keqiang, who became president of the Government Council meeting on December 12, decided to implement incentives for tax to promote the development of venture capital and increase support for entrepreneurial innovation, implement and accelerate the promotion of agricultural mechanics and agricultural machinery and equipment industry and help rural areas to revive and develop agriculture, rural areas and farmers. Pass the results of the 2018 National Science and Technology Awards Review.

To further implement the party's central committee and state council to increase support for entrepreneurial innovation support, promote the development of venture capital, use the market forces to gather more elements, improve the efficiency of entrepreneurship innovation, promote employment expansion and the transformation of Scientific and technological achievements, industrial upgrading, decided the meeting this year Based on the preferential policy of venture capital companies to invest in the seed period and start-up period, technology-based companies are deducted from taxable income by 70% of the investment amount. From 1 January next year to venture capital companies that have been legally given. It can be chosen to be counted on a single investment fund and the individual's equity transfer and dividend dividend from the fund must be subject to personal income tax at a rate of 20% or venture capital Total income is selected and each partner must receive revenue from the company. Calculate personal income tax at 5% to 35% profit of progressive tax rate. The implementation period for the above policy is provisionally set for five years. The tax burden for individual partners in venture capital companies has been reduced and only reduced.

The meeting pointed out that, in line with the implementation of the Rural Development Strategy, accelerated agricultural mechanization and upgrading of agricultural machinery and equipment provide an important support for the modernization of agriculture and farmers' income growth and also helps to expand the domestic market. It is necessary to adapt to the development of different types of moderate scaling needs, respect farmers' wishes, play the role of market mechanisms and grassroots creativity and promote local conditions in an orderly manner. The first is to improve the mechanized harvest level of larger crops such as rice, wheat, corn, potato, rapeseed, cotton and sugar cane. Support is granted in accordance with regulations for the implementation of deep plows and in-depth machines. We will treat all domestic and foreign agricultural machinery products equally, encourage financial institutions to perform mortgage loans and encourage local authorities to provide interest rate subsidies. Guide the qualified places to take the lead in basically achieving mechanization of the main crop production. The second is to promote advanced and useful agricultural machinery and technology. Support for fine seedling, high efficiency fertilization, precise use of pesticides, water saving watering and high horsepower, high-performance agricultural machinery and equipment demonstration and promotion, research and development to promote small and medium-sized agricultural machinery and mechanization technology for small farm production, hilly and mountainous areas . The third is to focus on weak deficiencies to accelerate agricultural machinery innovation and industrial transformation. Encourage large companies to convert into complete equipment integration. We will immediately solve the problem of "inorganic availability" in the weak joints of large economic crops. Improve the quality of agricultural machinery and equipment. Explore new R & D models and production as "Enterprise + Cooperative + Base". The fourth is to improve the basic conditions of agricultural machinery operations. Promote agricultural areas that are small, large, short and long, curved and straightforward, and support the conversion of farmland into hilly and mountainous areas. The fifth is to actively develop agricultural machinery socialization services. Grow agricultural machinery professional households, cooperatives etc. and encourage agricultural machinery service units to establish production complexes shared with machines, such as family farms, large plants and farms. Promote "Internet + agricultural machinery operations" and promote the development of smart agriculture.

The meeting listened to the report of the results of the 2018 National Science and Technology Awards Review, reviewed and approved the winners, types and grades of prizes and called for more scientific and technical staff, especially young people, to engage in advanced research and key technology research, expand internationally innovation cooperation and achieve more significant Original results, allow technology to better serve and support economic development and improvement of people's livelihoods.

The meeting also studied other matters.

(Editor: Li Linlin)


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