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    How To Make Profits Under Heavy Taxes?

    2017/1/7 20:24:00 28

    UNIQLOMujiShoes

    Consumer goods factories driven by expensive costs

    As early as 2015, a large number of consumer company moved Chinese factories out.

    We did a bit of inventory.

      

    Uniqlo

    The Fast Retailing plans to increase its order from Bangladesh and Indonesia to start with the low price clothing brand G.U..

    About 85% of Xun group's products were made in China, but as China's labor costs continue to rise, it has decided to increase the production ratio of 20%~30% outside China to 50%.

      

    MUJI

    After 3 years, the number of cooperative factories in China has been reduced from 229 to 86, and the purchasing ratio from China has been reduced by half from 60%.

    After the business of Qingshan, following Vietnam, Burma and Kampuchea, it will also be commissioned to produce in Indonesia this year. Southeast Asian factories mainly undertake sewing processes, and the fabrics needed are still purchased from Italy and China.

    CITIZEN also dissolved its production base in China in early 2015, CITIZEN precision (Guangzhou) Co., Ltd., and more than 1000 employees were released from labor contracts.

    Lee Fung, the world's largest trade buyer, has slumped in recent years, and its share price has also dropped to a record low. In recent years, it has also cut down purchases in the mainland and moved the factory to Southeast Asia.

    Feng Guoguan, chairman of Li Feng, said that China was the world's factory before 2009, and as labor costs rose to domestic demand, China is expected to become the world's largest consumer country by 2030. For example, China can maintain an average annual 6%-7% growth rate, which can surpass 3% of US economic growth and become the largest economy, and some labor-intensive industries will gradually be pferred to Vietnam and other regions.

     Lifeng

    The new president of the United States is the daughter of Ivanka Trump, the brand of the same name.

    Shoe shoe

    The factory, Huajian group, has built a light industrial park in Ethiopia since 2012. At present, there are more than 4000 employees in Ethiopia, of which more than 3800 local employees are in Ethiopia.

    According to the world clothing and shoe net, the cost of "made in China" is close to the US.

    The report analyzes the top 25 economies in the world, taking the US as the benchmark (100), and the manufacturing cost index of China as 96. That is to say, the same product cost 1 US dollars in the US, and 0.96 US dollars in China, so the gap between the two sides has been greatly reduced.

    Speaking of this, the new US President Trump is going to laugh.

    How to make profits under heavy taxes?

    "The tax burden of China's manufacturing industry is 35% higher than that of the United States".

    Is the tax burden high?

    According to the latest report released by the world bank and PWC, in 2016, the total tax rate of Chinese enterprises reached 68%, ranking the twelfth in the world.

    According to incomplete statistics, there are more than 10 kinds of taxes and fees.

    A chestnut, GREE Electric's social responsibility report released in 2015 showed that in 2015, the company paid a total of 14 billion 816 million yuan of taxes, the total revenue of that year was 100 billion 564 million yuan, the net profit was 12 billion 532 million yuan, and the tax accounted for 14.7% of GREE's revenue, which was 1.18 times the net profit.

    Corporate income tax and value-added tax are the "big heads" paid by the company.

    According to the People's Republic of China Income Tax Act 2008, the general corporate income tax rate is 25% of the taxable income.

    According to the regulations of the Ministry of finance, the highest value-added tax rate in China is 17% of the value-added products (except small-scale taxpayers), with a minimum of 3%.

    In contrast, Japan's value-added tax rate is 5%, South Korea and Vietnam are 10%, Singapore is 7%.

    In addition to paying taxes such as income tax, value-added tax and consumption tax, some enterprises in China also pay about 13% of the surcharge tax on this basis, including 7% of urban maintenance and construction costs, 5% of Educational Surcharges and 1% of flood control fees.

    Compared with the United States, many taxes in China are different.

    China's levying value-added tax on enterprises is to make enterprises increase taxes in the production process. The US sales tax is taxed in the final sales link, but sales tax is collected by the States, so there is a big difference.

    That is to say, in China, whether enterprises are profitable or not will need to pay VAT in accordance with their production, whereas in the US, enterprises will not pay taxes if they do not make profits.

    The problem of high cost, heavy tax burden and repeated investment is the unavoidable problem of the domestic real economy.

    In particular, the disappearance of demographic dividend is the last straw to crush the manufacturing industry.

    It is reflected that in the consumer goods industry, some of the brand factory relocation of shoes and clothing and other consumer goods is caused by high cost and tax burden. Another reason is also a large number of overcapacity caused by years of homogenization competition.

    After the closure and relocation, consumer brand manufacturers will face pformation.

    Improving production and supply efficiency, improving market accuracy and flexibility, and brand operation will be a major breakthrough for most consumer goods industries.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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