Subsidies to be Offered to Balance Out Implemented Tax Reform
Shenzhen have started to offer financial subsidies to enterprises with tax burdens that have increased since the implementation of the tax reform last November 1st. the reform took the place of the city’s business tax with VAT for transportation industries and several service industries in effort to lessen their tax burdens.
But some companies especially in the logistics and transportation industry only saw their tax burden increased since the implementation of the reform. This prompted the city government to offer two years of financial subsidies to these enterprises with taxes that have increased by 5,000 yuan a month due to the reform. The support policy is provisional and is effective until December 31, 2014.
The tax reform required enterprises to report their monthly tax changes to the office of the State Administration of Taxation. The office will closely monitor and analyze changes and identify which of the enterprises are qualified for the subsidy. The city bureau of Finance will then appropriate 70 percent of the subsidy to these qualified enterprises in thirty days time at the end of each quarter.