May 14, 2018

Pudong tax bureau to introduce more innovation and reforms to benefit local companies

Shanghai Pudong New Area Tax Bureau has introduced many preferential policies in Shanghai Free Trade Zone to exert the zone’s role as a testing field for the national innovations and reforms。

Such policies include the single window mechanisms for tax refund, online invoice delivery application and seasonal tax declaration for financial leasing companies.

Introduced in 2017, the single window tax refund mechanism is an important measure to promote trade facilitation in the zone. When applying for tax refund, the companies need not to put in their information manually any more, for their information has already been collected beforehand online.

By the end of 2017, the single window mechanism had been adopted across the Pudong New Area. By the end of this March, 4,500 companies had used the international single window to apply for tax refund.

The mechanism takes a lot of workload off from the staff and markedly increases the efficiency for companies with a large volume of tax refund. Also, it reduces lots of risks of miscalculation and delay, said Zheng Lihua, chief financial director of Shanghai Decent Investment (Group) Co.

Shi Wuping, general-manager of JIC Leasing Co, suggested earlier that if the financial leasing companies can declare tax at the same time with the banking industry, the capital settlement could be more facilitated.

The suggestion met with speedy response from the city and district level tax bureaus. Soon, the Pudong New Area Tax Bureau initiated seasonal tax declaration in July, 2017, incorporating 1,314 companies in Shanghai FTZ in the new mechanism.

As of now, the new practice has saved the financial leasing companies 10,728 times of tax declaration, increasing 1.3 billion yuan (US$205.35 million) in their circulating capital.

Also, the online invoice delivery mechanism has been adopted across Shanghai and more than 7,000 companies have used the invoice delivery service and received more than 5 million invoices.

Next, Pudong will take advantage of Shanghai FTZ’s preferential policies to build itself into a “highland” of tax reforms and it will work hard to explore more promotable innovations, said Wu Jian, director of the Pudong New Area Tax Bureau.