Local Policy: Shantou Chaoyang Tax Benefits Promote Textile And Garment Industry Upgrading

In recent years, the textile and garment industry in Chaoyang District has developed rapidly, forming a pattern that takes the "famous town of knitted underwear in China" as the center, and gradually radiates to the surrounding towns such as Heping, Tongyu and Guiyu, and the industrial chain is becoming more and more perfect. Up to now, there are 265 textile and garment enterprises above Designated Size in Chaoyang District, and the annual output of various types of textile and clothing ranks among the top in the country. In order to serve Shantou's overall situation of "establishing the city by industry and strengthening the city by industry", and better assist the development of textile and garment industry, the tax department of Chaoyang District has implemented the policy of tax reduction and fee reduction, taken various measures to promote "non-contact" service, so as to ensure that the tax benefit bonus can reach the market main body.

"Thank the tax authorities for their careful guidance and help enterprises use the R & D expenses plus Deduction Policy to reduce our income tax burden by more than 4 million yuan," said Wu chaozao, the person in charge of Guangdong Rongchang Textile Industry Co., Ltd.

It is understood that Guangdong Rongchang Textile Industry Co., Ltd. is located in Heping Town, Chaoyang District. It is a high-tech textile enterprise integrating weaving production and sales. Its fabrics have a high reputation in the textile and garment markets in Zhejiang Province and the Pearl River Delta region. In addition, it is also the designated supply partner of Nike, puma, converse and other international brands. From January to October in 2021, the operating revenue will reach 660.2951 million yuan, the import value will be 365.4608 million yuan, and the export value will be 185.3741 million yuan. Wu chaozao said, "the labor cost of the textile and garment industry is relatively high, and it is imperative to promote the transformation. Therefore, the company has invested 150 million yuan in recent years to introduce foreign advanced equipment, which not only effectively improves the production efficiency and product quality, but also brings corresponding financial pressure to the enterprise.".

After learning about the company's actual situation, Chaoyang District tax bureau helps enterprises enjoy preferential tax policies better and faster by establishing a "Tax Assistance Group" to provide one-to-one accurate guidance and using wechat group to answer questions and solve doubts. Chaoyang tax staff said: "through the guidance, Guangdong Rongchang Textile Industry Co., Ltd. declared in October this year that it would enjoy the additional deduction of nearly 17 million yuan from the R & D expenses of the first three quarters. In addition, it enjoyed preferential policies for high-tech enterprises, which reduced the income tax burden of enterprises by more than 4.6 million yuan."

Shantou Fulong Garment Co., Ltd., located in Gulao Town, Chaoyang District, is also a textile and garment enterprise. The company integrates clothing design, production and sales, and its products have unique effects of jacquard, floating line, set circle and false rib. Its products are sold well to Fujian, Zhejiang, Shanghai and other provinces and regions in China, and exported to the United States, Australia and other countries. The company's sales revenue is 48.09 million yuan in 2020, and 34.28 million yuan in January October 2021. Under the guidance of the tax department, Fulong company directly reduced and reduced the enterprise income tax by 320000 yuan through enjoying the preferential policies of small and micro enterprises income tax, which accounted for 19.58% of the company's operating profit in the first three quarters of 2021.

Chen chuangjie, the person in charge of enterprise finance, said: "the tax preference benefits the company a lot, effectively reduces the operating cost of the company, relieves the pressure of capital turnover, indirectly expands the profit space for the company, and adds a new driving force for the company's operation and development in the environment of increasing operating costs!"

Next, the tax bureau of Chaoyang District will continue to vigorously optimize the tax service, give full play to the role of tax functions, effectively deliver policies, solve problems and handle practical matters for enterprises, ensure direct and quick enjoyment of tax reduction dividends, boost the upgrading of Chaoyang textile and garment industry, and add tax impetus for the sustainable and healthy economic development of the jurisdiction.

(source: released by Chaoyang)