Hi-tech firms benefit from tax reduction

Writer: Zhang Yu  | Editor: Holly Wang  | From: Shenzhen Daily | Updated: 2019-11-21

High-tech companies in Shenzhen have been the group that benefits the most from the city’s preferential tax policies for enterprises, the Shenzhen Economic Daily reported.

According to statistics, 14,197 State-owned high-tech firms in Shenzhen have enjoyed preferential income tax policies for high-tech enterprises this year, with a total tax reduction of 13.6 billion yuan (US$1.93 billion) and a per capita tax reduction of 959,000 yuan.

Meanwhile, 12,041 high-tech enterprises have enjoyed the additional deduction of R&D expenditure, with the amount of additional deductions reaching 99 billion yuan.

At present, the high-tech industry has become the biggest pillar industry of Shenzhen’s economy. The total number of national high-tech enterprises in Shenzhen has reached 14,400, ranking second among large and medium-sized cities in China.

In the first half of 2019, the output value of the high-tech industry stood at 1.13 trillion yuan, an increase of 11.26 percent over the same period last year.

“The tax and fee cuts policies have accelerated the industrialization of scientific achievements when enterprises are in the stage of trial production,” said Li Peiyuan, product manager of Shenzhen Weigong Biotech Co. Ltd.

Li said that although the company has been established for two years, it has become a first-class manufacturer of flow cytometry in China.

“With the advent of the 5G era, whoever reacts quickly will have a place in the huge market,” said Wu Qian, financial director of Mobi Antenna Technology (Shenzhen) Co. Ltd.

The company, specializing in smart 5G products, enjoyed an additional deduction of R&D expenses totaling 8.54 million yuan last year, according to Wu.

Shenzhen Creality 3-D Technology Co. Ltd. is also a beneficiary of the tax and fee reduction policies. In 2018, the company gained 11 million yuan from an additional deduction of R&D expenses.

“We use the funds on the research and development for our super intelligent 3-D printer,” said Liu Huilin, co-founder of Creality 3-D Technology. The 3-D printer, which can also be used for laser engraving and CNC engraving, is expected to become the company’s next best-selling product.

According to Liu, the company’s sales revenue increased from 22.95 million yuan in 2017 to 153 million yuan in 2018.