In the Suzhou Industrial Park (SIP), a team of experts well versed in foreign-related tax matters won high praises for fast, professional, and dedicated services to nearly 5,000 foreign-invested enterprises.
The team, composed of veterans from the SIP Bureau of the State Administration of Taxation, has provided 24 hours of services in many forms since the outbreak of the pandemic, such as regular online researches and in-person visits to fully understand the business operations and timely respond to inquiries and requirements of enterprises based in the park.
For example, Suzhou TF-AMD Semiconductor met difficulties to bring back workers amid the pandemic restrictions and struggled on the production line. Meanwhile, as logistics cost rose significantly due to the spread of the coronavirus in Japan and Europe, the company had to hold a stock of materials months in advance, facing an increasing pressure of cash flow. After knowing the company’s difficulties, the local taxation authority acted swiftly and sent officers to offer assistance for a speedy refund of export tax. With the timely support, the enterprise was in a better position to quickly adjust development priority, introduce new technologies and production lines for new products, and accelerate the technological transformation and upgrade. It kept sending products including CPU, GPU and APU to all over the world. In the first five months this year, the enterprise’s total foreign trade reached 10.087 billion yuan, an increase of 69.1 percent year-on-year.
Another example to benefit from the taxation policy is SIG Combibloc (Suzhou), which has seen rapid growth since its opening in 2002 in the park. Pan Hong, the company’s financial officer, said the great strides are impossible without the efficient public service and support to innovation by the park.
Amid the rapid growth, SIG Combibloc (Suzhou) decided to build the third plant in Asia-Pacific in the industrial park, raising the registered capital from $55 million to $255 million. Then in 2019, the company decided to use the retained earnings to increase the registered capital by $20 million. The team’s taxation experts took the initiative to contact the company and helped file the tax deferral for income tax of over 7 million yuan, said Pan.
SIG Combibloc (Suzhou) said the park’s high-quality tax services and preferential policies have brought real benefits to the enterprise, and the sufficient cash flow boosts the confidence to increase investment in R&D and equipment, which in turn will offer products of high quality and advanced technology to customers.