New tax-related market entities surged during the period of the 13th Five-Year Plan (2016-2020), China Central Television reported, citing information released by China’s State Taxation Administration on Wednesday.
The share of new tax-related market entities in modern service industries such as rental and commerce services, scientific research and technological services, information transmission and technological services rose significantly, from 10.02, 3.89 and 2.84 percent in 2015 to 13.70, 5.45 and 3.78 percent respectively in 2020.
In total, 5,600 private businesses were newly registered as tax-related market entities. They were the major source of newly registered tax-related market entities during the 13th Five-Year Plan period, accounting for more than 90 percent of total newly registered market entities, the report showed. What’s more, the rate of private businesses as new tax-related market entities continued to rise year-by-year, from 96.30 percent in 2015 to 98.81 percent in 2020, up 2.51 percentage points.
Geographically, Guangdong, Zhejiang, Jiangsu, Shandong and Henan claimed more than 40 percent of the new tax-related market entities.
Statistics also show new tax-related market entities had strong vitality and sound growth. The overall survival rate was above 80 percent.
The continuous rise in the share of modern services as new tax-related market entities reflected a significant result for China’s transforming of its service industries, said Rao Lixin, chief auditor of the State Taxation Administration, adding it also showed the country’s economic structure is optimizing and new economic modes and drivers are growing.