Zhanjiang enterprises benefit from new tax policies

More than 119,000 micro and small-sized enterprises in Zhanjiang have benefited from tax reductions of over 224 million yuan ($33.9 million) in the first three quarters of this year.

This came as a result of the six preferential tax policies launched by the State Council on April 19 as well as the Zhanjiang Municipal Office of the State Administration of Taxation and Municipal Local Taxation Bureau's efforts to implement them.

The new tax policies, which aim to boost the development and innovation of micro and small-sized enterprises, have increased the ratio of pre-tax deduction on scientific research expenses. Meanwhile, the scope of beneficiaries has been widened.

Zhanjiang CNE Electricity Corporation, a small enterprise engaged in household appliance and electronic products, is one of companies benefiting. Thanks to the preferential policies, its tax payment in the first three quarters decreased from 99,678 yuan to 39,872 yuan.

The company used to pay a total tax of more than 100,000 yuan annually. The reduction of the tax payment not only eases its burden for operation, but also allows it to spend more on research and thus enhance its competitiveness, said Lin Xiaojia, corporate representative of CNE.

To push forward the implementation of the policies, the Municipal Office of the State Administration of Taxation and the Municipal Local Taxation Bureau set up special teams to go through computer files. The approach is meant to enable every qualified enterprise to enjoy the policy.

Moreover, 173 sessions in different forms, attended by more than 170,000 tax payers, have been held to explain the new tax policies, said Li Yaping, head of the Taxation Division of the Municipal Local Taxation Bureau.

According to the latest statistics, the added-value tax reduction of Zhanjiang enterprises during the first nine months reached 1.86 billion yuan, and that of corporate income tax amounted to 0.38 billion yuan.