A scene from the event

           

Recently, sponsored by the Business School of Central Universityof Finance and Economics (CUFE), the CUFE School of Public Finance and Tax, andthe CUFE Alumni Association, and organized by the CUFE MBA Reading Time Cluband Public Finance Club, the symposium themed on “Preparedness for Tax Reform”was held as scheduled in the CUFE MBA Education Center.

           

A scene from the event

               

Lan Fenghui,a distinguished alumnus of CUFE

             

ProfessorYang Zhiqing from the CUFE School of Public Finance and Tax

                           

Professor Wang Ruihua,Dean of the CUFE Business School, addressed the eventGlobal Competition and Tax Reform

               

                       

In November 2017, the US government introduced tax relief policieslike broad individual income tax (IIT) and corporate income tax cuts, in a bidto facilitate capital inflows to the US territory. In March 2018, PresidentTrump waged a tariff war against China and initiated the Section 301investigation to protect the future of US industries.

               

In response, China worked to improve global competitiveness ofdomestic enterprises through adjustments and reforms of tax policies. ProfessorYang Zhiqing elaborated on the issue, referring to a series of domesticpolicies in the wake of Trump’s tax reform. After the Two Sessions, China hasreduced tax burdens, particularly those of small and micro businesses, reformedthe system of value-added tax (VAT), and gradually cut the number of VATbrackets from three to two. Adapting to the reality of enterprises’ outbound investment,China has entered a new era of tax cuts.

                   

Two guestspeakers talked about global competition and tax reform

Tax Policiesfor Small and Medium-Sized Enterprises

                 

Micro, small and medium-sized enterprises (MSEMs) have beenintegral in promoting economic growth, creating jobs, facilitating scientificand technological innovation, and promoting social harmony and stability. However,exposed to domestic and international economic climates, MSEMs are overwhelmedwith problems such as heavy tax burdens and financing strains. On April 25,2018, at the Executive Meeting of the State Council, another seven tax cutmeasures were introduced to encourage entrepreneurship and innovation and to facilitatethe development of small and micro businesses. These measures have helped toaddress the pains and difficulties troubling such enterprises. Professor Yangbelieved that, based on past experience, despite their expiration by the end of2020, these preferential policies for small and micro businesses would stillcontinue in effect afterward. This fits with the trend of “decreased costs” inbusiness development as well as the idea that “governments should servebusinesses.” Mr. Lan held that China should draw on the experience of developedcountries, improve the social credit system, forge a more efficient and capablegovernment, eradicate “vanity projects,” and boost the development of the realeconomy.

             

A student raisedquestions to two guest speakers

Tax Advantages of Hainan Free Trade Zone

               

On April 13, 2018, President Xi Jinping attended the 30thanniversary conference of the founding of Hainan Province and the Hainan SpecialEconomic Zone, announcing that the CPC Central Committee would support Hainan inconstructing pilot free trade zones and free trade ports island-wide. ProfessorYang and Mr. Lan jointly interpreted the investment environment and tax advantagesof Hainan Free Trade Zone. They saw eye to eye on free trade ports’ advantagesover free trade zones in terms of development potential, business environment,and policy preferences. As the biggest free trade zone, Hainan is in theforefront of China’s reform and opening-up and enjoys tremendous geographicadvantages. They mentioned our national goal of completing the construction ofHainan free trade port by 2025 and making Hainan a world-class free trade portby 2035. In constructing Hainan free trade port, China should draw on theexperience of Hong Kong and other free trade ports but, more importantly, itshould develop tourism based on indigenous cultures, so as to establish a freetrade port with Chinese characteristics, attract foreign businesses, createmore jobs, and increase household incomes.

             

Mr. Lan Fenghuitalked about tax policies for Hainan Free Trade Zone

IIT reform

                   

On March 5, 2018, Premier Li Keqiang, in his Report on the Work ofthe Government, proposed to raise the threshold for IIT and introduced a set ofspecial additional deductions. Lan suggested that “with every household as taxbasis, IIT should be levied under a mixture of lump sum and schedular taxsystem for management.” He also noted that problems in the existing IIT systemhad been well recognized by the Chinese people. “IIT reform is a top priorityin China’s tax reforms, as it concerns the interests of every household andhelps promote the reform of other taxes. The reform is not just about raisingthe threshold: given the uneven economic performances of different provinces atpresent, it is important to designate a range as national base for IITdeduction and empower provincial people’s congresses to set local bases in linewith their own economic performance. This is the core of reform and it concernsinstitutional top-level design,” said Lan.

                 

ProfessorYang Zhiqing discussed about misunderstandings of IIT and its reformorientations

                   

Dean WangRuihua concluded the symposium and expressed thanks to two guest speakers

                 

Group photoof guest speakers and students attending the symposium