Wenzhou shoes and other manufacturing industries bid farewell to the super-national treatment

According to the State Council notice, starting from yesterday, China began to impose urban maintenance and construction tax and education surcharges on foreign-invested enterprises, foreign companies, and foreign individuals. After the implementation of this policy, more than a thousand foreign-invested enterprises in the city will no longer be entitled to “super national treatment” but will be treated equally with domestic companies.

According to statistics from the Municipal Foreign Trade Bureau, there are 1,163 foreign-invested enterprises registered in the city with a total investment of 8.176 billion U.S. dollars. The contractual foreign capital amounted to 2.87 billion U.S. dollars, and the actual foreign investment was 2.67 billion U.S. dollars. Foreign-funded enterprises are mainly distributed in the second and third industries. The registered capital of the secondary industry accounted for 73.5% of the total, mainly in the textile, footwear, and electrical equipment manufacturing industries. Foreign-invested enterprises are mainly concentrated in Lucheng, Longwan, Bohai and Wenzhou Economic and Technological Development Zone.

At present, China's urban construction tax and education surcharges levied on domestic-funded enterprises are based on the actual amount of tax paid on value-added tax, consumption tax, and business tax. The city maintenance and construction tax is levied according to the taxpayer's location in urban areas, county seats (towns), and other areas, and is levied at a rate of 7%, 5%, and 1%, respectively, and education surcharges are currently collected at a rate of 3%.

The relevant person in charge of the Municipal Local Taxation Bureau stated that the elimination of “super national treatment” by foreign-invested enterprises and foreign enterprises is a trend of social development. Although foreign-invested companies and foreign companies have increased their tax burden, there are still many preferential policies for these companies in China, and urban maintenance and construction tax and education surtax is a “small tax”, which is minimal for companies, so it will not affect them. Too big. However, the taxation rate of domestic and foreign-funded enterprises is a necessary requirement for the fairness of market competition, which is of great significance.

According to the relevant person in charge of the Municipal Foreign Trade and Economic Cooperation Bureau, actual foreign investment in Wenzhou accounts for about 3%, which is not large compared with the province. Therefore, this policy adjustment has little impact on the Wenzhou economy.