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China to halve time for simplified write-off process

Updated: Jan 5,2019 8:07 PM

Premier Li Keqiang pressed for halving the time span of the simplified write-off process for enterprises facilitated by a string of policies while presiding over a State Council executive meeting on Jan 2.

A slew of preferential measures came out at the meeting, targeting the arduous write-off process issue that is a major concern of enterprises.

Fully affirming the convenience ushered in by the reform of streamlining administration and delegating powers, Premier Li said that the write-off issue still remains a problem, though many international institutions approve of China’s increasingly convenient business environment.

Departments concerned should tackle the write-off problem with immediate effect through stepping up streamlining administration and delegating powers, in a bid to help invigorate enterprises and optimize their structures, Premier Li noted.

To cope with the thorny problem, the Premier said, related departments could learn from the achievements made in simplified business registration reform. Considerable reduction in documents required by registration, an integrated e-government platform, and more can help shrink the time frame of the write-off process.

Write-off procedures for taxation, social insurance, business, custom services and more also should be streamlined. Categorized management of tax write-offs will be carried out, allowing taxpayers, with no records in engaging tax-related matters, receiving invoices, or defaulting on tax payments, to directly apply for simplified write-offs.

A new approach will be introduced to simplify write-off procedures — free announcements by the National Enterprise Credit Information Publicity System. In addition, liquidation reports will be the sole document needed for write-off procedures.

Meanwhile, a simplified pilot campaign will be launched to streamline write-off procedures for unlisted joint-stock companies and specialized farmer cooperatives, with the duration of announcements condensed from 45 days to 20 days. Enterprises that fail to conclude the simplified write-off procedures are entitled to another opportunity once they meet the related requirements, according to decisions made at the meeting.

A one-stop online write-off service system calls for further promotion, underpinned by integrated e-government platform. Obligations of enterprises as market entities will be accentuated, and discredited enterprises will be legally held to joint punishment, in a bid to prevent them from maliciously erasing debts.

The reform measures will usher in a greatly shortened time span for write-off procedures for enterprises, in which the time for simplified write-off procedures will be halved.

A vigorous market, the Premier added, is the most effective countermeasure to the economic downward pressure. Government at all levels should better serve market entities in every possible way.