A tax service and a series of tax incentives has reportedly been delivered impeccably and with great efficiency in the Jinyi New District – located in the city of Jinhua in East China's Zhejiang province – further accelerating the drive to innovation and technological transformation of its resident companies.
In the wake of the official approval last September of the Jinyi Sector of the China (Zhejiang) Pilot Free Trade Zone, businesses there have been benefitting from the raft of preferential policies including tax cuts.
In a move to speed up the development of its new materials industry in particular, each taxpayer was tagged in terms of their industry and development scale, so that each could receive the specific policy initiatives that they needed.
The process was implemented by the local tax department via the Zhejiang Tax Collection and Payment Communication Platform and the process was driven by big data technology to ensure its accuracy.
Moreover, it is understood that the tax department has also set up a comprehensive service team to handle the implementation of the policies.
One of the resident companies, New More Technology Co Ltd – which focuses on the industrial applications of graphene in its products – was given help to secure a rebate on its value added tax, or VAT, which amounted to 500,000 yuan ($77,450).
Other local companies have voiced their enthusiasm about the initiative.
"This year, the additional tax deduction rate for research and development costs has increased to 100 percent, which has greatly encouraged us to invest more funds in innovative R&D," said Lyu Bin, head of the finance department of Jinhua Stars Alloy Rims Co Ltd.
Lyu added that as a result, his company had increased its budget this year for R&D by 20 percent in the current year to more than 10 million yuan.
