The Dream Factory of China

Qianhai-based Union Logistics (China) Co. Ltd. has been exempted from more than 600,000 yuan (US$ 86,415) in value added tax (VAT) for the 3,000 negative pressure ambulances it had delivered to medical institutions around the country thanks to a policy the Qianhai tax authority rolls out to waive the VAT for companies contributing to the novel coronavirus prevention efforts.

“The tax declaration procedures have also been simplified for us,” said Dai Lijun, finance controller of Union Logistics.

The VAT exemption policy is one of a series of convenient services offered by Qianhai Tax Service to enterprises in the free trade area in response to the epidemic outbreak.

Qianhai Mingtian Supply Chain is another firm benefiting from the tax policies. It received tax rebates in just eight work days, which greatly relieved the company’s financial pressure.

According to Lin Ziting, Mingtian’s financial manager, it usually takes a company up to 15 days to go through the tax refund process. Under the new favorable policies, the process has been shortened by nearly half to eight days.

Before receiving the tax rebate, Mingtian’s operation has almost been halted as it was financially strapped by expenses incurred from employee wages, property rental and loan interests.

Now Mingtian’s operation has been back on track with 95 percent of its production capacity resumed.

Chen Desheng, deputy director of Qianhai Tax Service, said information on the favorable tax policies is available on the service’s WeChat public account and official Website. He said his staff has also reached out to companies that are eligible for the tax benefits and guided them through the application process on phone.

The tax authority has also optimized its services in various aspects.

Taxpayers are encouraged to apply for services online, and the paper materials will be delivered to the taxpayer by post. The approval time for services such as export tax rebate and invoice application is shortened. Enterprises affected by the epidemic can also have the tax payment day extended.

Conveniences have also been extended to the service hall of the tax authority.

Appointment is required to discouraged people gathering at the service hall, which is disinfected daily. People have to undergo a temperature check before being allowed to enter the service hall. Preview windows and consultant personnel are provided to taxpayers for quick handling of their business.