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More than 10.7 Billion Yuan of Tax Deductions and Exemptions in Ningbo for Energizing Enterprises

The data of the final settlement of the business income taxes in 2019 of Ningbo are released. It is indicated that there are 1060 high-tech enterprises in Ningbo enjoying the preferential policy of lowered 15% tax rate for income tax, which is 4.666 billion yuan of tax reduction; 5678 enterprises enjoy the preferential policy of 175% additional deduction for research and development expenses, and the tax reduction is 6.039 billion yuan for them. The two policies have reduced the burden of 6738 companies by more than 10.7 billion yuan. The number of enterprises as beneficiary has increased by 26.63% year-on-year, and the amount of tax deductions and exemptions has increased by 25.07% year-on-year.

“For we thought that the additional deductions of R&D expenses and preferential policies for high-tech enterprises were the ‘privilege’ of the manufacturing industry, we did not expect that the construction industry could also be covered by this policy!” Ningbo Municipal Engineering Construction Group Co., Ltd. is a newly recognized high-tech enterprise in 2019. For this unexpected tax cut, Chief Financial Officer Chen Bohe was overwhelmed with joy

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Chen Bohe said that since the establishment of the technology center of the group in 2010, the annual R&D funds invested by the group have increased from several million yuan at the beginning to hundreds of million yuan now, and this expenditure has brought certain financial pressure to the group. “With help from the taxation departments and S&T departments of the government, we successfully applied for high-tech enterprise certification and enjoyed the additional R&D preferences. Compared with 2018, our output value increased by 1.2 billion yuan in 2019, but the amount of tax was less by 6.52 million yuan.” Chen Bohe added that the company even received an additional deduction for R&D expenses in 2017 and 2018, with   8.99 million yuan as income tax deductions and exemptions.

In order to ensure that the annual “policy red envelope” is accurately delivered to the enterprises, the municipal taxation departments issue tax information with an app  “Yong Shui Ding” (namely, the bulletin of Ningbo taxation), which carries out live training, answers questions online 24 hours a day with the intelligent consulting robot “Shui Xiao Mi” (namely, the secretary of tax). These “non-contact” services render great conveniences for taxpayers.

At the same time, the taxation departments have also optimized and improved the information platform for the follow-up management of the enterprise income tax, marking the special groups such as high-tech enterprises and those covered by additional deductions of R&D expenses, and carrying out “one-to-one” accurately pushed guidance and follow-up management, to ensure that the preferential policies are known by all those should know, and cover all that should be covered,  so that the money is used to reduce the burden on enterprises and to encourage innovation

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