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Four ministries help reduce taxation for start-up incubator

Updated: Aug 15,2016 8:30 PM     english.gov.cn

Premier Li Keqiang speaks at a symposium with experts and entrepreneurs on July 11.

Within two weeks, UR Work - a start-up incubator established a year ago - received field research from four ministries and actual tax reduction. This all thanks to a symposium chaired by Premier Li Keqiang.

“Our staff felt the strong support and encouragement from our country, and the central government’s support for private entrepreneurship and innovation enterprises,” said Mao Daqing, founder and president of UR Work in a letter to Premier Li.

The Premier chaired a symposium in which Mao attended on July 11. Premier Li listened to opinions and suggestions from experts and entrepreneurs on the economic situation and related business. As the entrepreneur representative, Mao said that development of China’s service industry for start-up businesses ranks high through the world, but still needs support in business registration and taxation policy.

“For example, start-up incubators are a new industry, and there are no specific regulations regarding its taxation,” Mao said.

Premier Li asked, “What is your actual tax rate now?”

“It varies,” Mao answered.

“At some places we are defined as a real estate project or real estate leasing project. In that case, the tax rate can be 11 percent high.”

The Premier then asked related officials to investigate the case, stressing the importance in deepening reform of administration streamlining, power delegation, and optimizing service.

Several days later, officials of the State Administration of Taxation visited a maker space of UR Work. Regarding the problem Mao proposed, they defined the new industry as modern service industry, with the tax rate being six percent.

Meanwhile, UR Work staff was invited to the Ministry of Finance to discuss preferential policies for taxation. They also fully participate in the improvement of industrial standard setting.

When interviewed, Mao said that current business environment for entrepreneurship is the best in history, and he hopes that supporting policies will continue.

“We must implement innovation-driven development strategy. Mass entrepreneurship and innovation are focal points that can stimulate more market vitality,” said Premier Li.

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