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Tesla, Goke, Other Key Firms in Shanghai’s Lingang Have Saved USD176.7 Million in Taxes so Far 2022-08-19
Tesla, Goke, Other Key Firms in Shanghai’s Lingang Have Saved USD176.7 Million in Taxes so Far
US electric car startup Tesla, Chinese quantum computing firm Goke Microelectronics and 130 other companies that have set up shop in Lingang New Area, part of Shanghai’s free trade zone, and which qualify for the zone’s preferential tax policies have saved CNY1.2 billion (USD176.7 million) in tax payments since the tax breaks were introduced two years ago.
Fifty-six integrated circuit companies, 54 artificial intelligence firms, 18 biomedical companies and four aerospace firms have been approved in six separate batches to pay corporate income tax of 15 percent, as opposed to the regular rate of 25 percent, Wu Xiaohua, a senior official of the Lingang New Area management office, said yesterday.
Firms engaged in research and development as well as manufacturing in the four key industries of chipmaking, AI, biomedicine and civil aviation can pay corporate income tax of 15 percent for five years from the time they start operating in the zone, the Ministry of Finance and the State Taxation Administration said in July 2020.
The Lingang New Area is leading the country by spearheading a basket of tax breaks. It is waiving value-added tax for services in the Yangshan Special Comprehensive Bonded Area and offering VAT refunds for international cargo ships registered at Yangshan Port. Personal income tax for certain highly sought-after skilled workers has also been set at 15 percent.
"These two 15 percent income tax policies can ease the tax burden of key industries and employees by over CNY1.5 billion (USD221 million) a year, according to preliminary estimates," Yin Zhengping, an official at the Shanghai Municipal Finance Bureau, said yesterday.
"SenseTime Intelligent Technology is benefiting from the 15 percent tax rates, refunds on software value-added tax, R&D tax allowances and other breaks," Qian Qianying, financial executive director at the affiliate of AI giant SenseTime Technology, told Yicai Global.
Source: Yicai
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