SND exempts enterprises from 3.32b yuan in taxes in 2021

Suzhou New District in Suzhou, East China's Jiangsu province, exempted local enterprises from more than 3.32 billion yuan ($490 million) in taxes last year, up nearly 42 percent year-on-year, according to local authorities.

The tax reduction applies to high-tech enterprises, service businesses with advanced technologies, and those with research and development expenditures.

For example, high investment in R&D is the main expenditure of Lexy, a Suzhou-based manufacturer of home appliances.

After learning of the situation, SND governmental departments contacted Lexy to explain the preferential tax policies on technological innovation, saving Lexy and its subsidiary 1.12 billion yuan in taxes.

A senior officer from Lexy said that thanks to these preferential policies, the company has more abundant capital to develop products and tap into more markets.

In 2022, 2,588 enterprises in SND were exempted from 2.385 billion yuan in taxes for R&D expenditures, an increase of 67.63 percent year-on-year.

A total of 221 local high-tech enterprises were exempted from a combined 931 million yuan in income taxes this year, up 1.32 percent year-on-year, while this year the district exempted three service businesses with advanced technologies from 5.7 million yuan in income taxes, a 26.31 percent year-on-year increase.