Lin-gang Special Area rolls out administrative tax measures
Lin-gang Special Area in the China (Shanghai) Pilot Free Trade Zone recently started a pilot program for independent tax payments at branch offices, according to local officials.
The pilot program means the branch offices registered in the Lin-gang Special Area (Fengxian area) serving manufacturers (check) located in Shanghai Municipality will be allowed to independently obtain and use invoices.
Officials said the reform will bring huge convenience to the companies.
Gao Cong, financial manager of Lin-gang branch of Bontaz-Centre Co Ltd, said that his company used to waste time and effort in obtaining invoices from the mother company, but now this new taxation administration measure would free up red tape and help the subsidiary in its efforts to expand.
In addition, the special area also implemented another reform. Under this, small-scale taxpayers that have no taxable income - and have not been subject to verification of invoice types in the current period – will be exempt from value-added tax, consumption tax and additional taxes and fees, as well as development fees for cultural undertakings.
This initiative not only prevents taxpayers who adopt zero tax return filings from failing to file a tax return during a specified period, but also alleviates unnecessary tax burdens on taxpayers, according to Qu Xia, deputy general manager of Shanghai Lin-gang Fengxian Economic Development Co Ltd.
So far, 105 enterprises have benefited from the new reform, officials said.
Moving forwards, officials said Lin-gang Special Area will continue to adapt efficient international standards for its business environment to benchmark.
They said it will also pilot other tax administration programs and help enterprises reap the benefits of new policies.
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