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Promoting Tax Policies through PPP Model(No.125, 2016)

2016-10-21

By Guo Wei, Zhao Fujun, Huang Dongdong and Xie Gengxi, Members of Research Team on “Accelerating the Development of Public-Private-Partnership (PPP) Model”, Research Department of Foreign Economic Relations, DRC

Research Report No.125, 2016 (Total 5008)2016-09-14

Abstract: China has promulgated a number of preferential tax policies for improving public service undertakings, and a preferential tax system concerning the public-private-partnership (PPP) development model has taken shape. However, some tax preferences should be further improved and clarified. For instance, land utilization tax, property tax, deed tax and other preferential tax policies are mainly applied to government and public institutions, whereas the number of tax breaks provided to public services is relatively limited and the period of tax preferences for public services and other corporate income taxes is relatively short, making it hard to meet the need of PPP development. PPP will be a normal model for public services. Based on the PPP model, efforts should be made to formulate and improve preferential tax policies compatible with PPP development, provide preferential policies to public services and introduce as soon as possible tax preferences in the course of asset transfer of PPP projects.

Key words: public-private-partnership, public services, preferential tax policies

 
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