State Council: The 127th Canton Fair will be held online in mid to late June

Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on April 7 and launched a series of measures such as the addition of a comprehensive cross-border e-commerce pilot zone, support for processing trade, and online hosting of the Canton Fair to actively respond to the impact of the epidemic and strive to stabilize the basic foreign trade and foreign investment; Part of the tax support policy for benefit finance and small loan companies.

The meeting pointed out that the current global pandemic has a huge impact on the world economy and international trade and investment. In accordance with the Party Central Committee and the State Council’s deployment of the "six stability" work, we must persist in expanding opening up, and adopt a series of measures to stabilize foreign trade and foreign investment to reduce the serious impact on my country's economy.

At present, traditional foreign trade has been greatly impacted by the epidemic. In order to make greater use of the advantages of cross-border e-commerce and use new formats to help foreign trade overcome difficulties, the meeting decided to add 46 comprehensive cross-border e-commerce pilot areas. Promote effective practices to promote the development of cross-border e-commerce, implement supporting policies such as exemption of value-added tax and consumption tax, and enterprise income tax for cross-border e-commerce retail export goods in the comprehensive test zone, and study the cities where the comprehensive test zone will meet the conditions Included in the pilot scope of cross-border e-commerce retail import.

The meeting called for coordinating the development of domestic and foreign trade and supporting the relief of processing trade enterprises. For processing trade bonded materials or finished products sold domestically, interest on deferred tax will be temporarily exempted before the end of the year. The pilot program for processing trade enterprises to choose to pay tariffs on imported materials or finished products for domestic sales will be extended to all comprehensive bonded areas. Expand the scope of industries that encourage foreign investment.

In response to the severe situation of the global epidemic, the meeting decided that the 127th Canton Fair will be held online in mid to late June. We invite merchants from home and abroad to display products online, use advanced information technology to provide all-weather online promotion, supply and sourcing docking, online negotiation and other services, to create an online foreign trade platform for high-quality specialty products, so that Chinese and foreign merchants can place orders and do business without leaving home.

The meeting pointed out that it is necessary to improve the capacity of freight channels such as China-Europe trains, fully undertake the transfer of cargo sources by sea and air, and support the stabilization of the international supply chain and the resumption of production.

In order to strengthen inclusive financial services, the meeting decided to implement fiscal and financial policy linkage and extend some of the expired tax preferential policies until the end of 2023. Including: exemption of value-added tax on the interest income of loans issued by financial institutions to small and micro enterprises, individual industrial and commercial households, and farmers of 1 million yuan and below; the interest income of loans of 100,000 yuan and below to rural households, and insurance for the cultivation and breeding industry Business premium income is included in the taxable income of income tax at 90%; the interest income of small loan company loans of 100,000 yuan and below is exempted from value-added tax, and 90% is included in the taxable income of corporate income tax. The loan loss reserve based on 1% of the loan balance at the end of the year is allowed to be deducted before income tax.

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