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在线翻译:
szdaily -> Shenzhen -> 
Lower taxes benefit enterprises
    2018-10-18  08:53    Shenzhen Daily

SINCE the beginning of the year, the Shenzhen government has been cutting taxes and fees for enterprises to improve the business environment and revitalize the economy, the Shenzhen Special Zone Daily reported.

One of the policies is to lower rates of value-added tax (VAT). “The adjustment of the VAT rate is like a package of gifts for emerging industries like us,” said Chen Zhiqing, an accountant from Yuyang Technology. Chen said that, thanks to the policy, Yuyang could save up to 450,000 yuan (US$65,016) a year if the company’s output increases by 20 percent.

According to the report, three specific measures of VAT reform were implemented May 1 by the city’s taxation bureau, bringing actual benefits to a large number of enterprises in Shenzhen.

Yishengke cultivates biological cells and studies, produces and sells related raw materials. Due to the specialty of the industry, the company had been shouldering a high tax rate. The company paid a total of 600,000 yuan in VAT last year. Under the new policy, the company has been recategorized as a small-sized tax payer, which could save the firm up to 400,000 yuan in tax annually.

Another Shenzhen company, Regina Miracle, which is a key supplier of the famous underwear brand Victoria’s Secret, has saved a total of 1.77 million yuan this year since the export duty rate was dropped from 17 percent to 16 percent.

The adjustment of VAT rates has brought economic benefits to nearly 400,000 companies and led to a cut of over 3.6 billion yuan, according to the report.

Another tax incentive policy, released in April, has helped more small and micro businesses in Shenzhen pay less corporate income tax by increasing the taxable income cap to 1 million yuan, said Cao Mingjun, chief of the bureau’s corporate income tax section.

Ziv Digital is one of the small and micro businesses that benefit from the policy, as it is expected to save the firm 150,000 yuan in tax this year with the cap increase.

In addition, the government has also reduced taxes for the investment costs of technology companies, so these companies can grow without too much of an economic burden.

The State Council decided to increase the export rebate rates for 397 kinds of products Sept. 15, and later further reduced burdens on companies by effectively hiking export rebate rates again after consolidating the seven levels of rebate rates to five Nov. 1.

“The export rebate rates of over 3,000 kinds of products have been increased by 1 to 5 percentage points,” said Chen Tiansong, an official from the tax bureau. With the adjustment, enterprises with export business can pay less tax and increase their export quantities.  (Zhang Qian)

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