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Preferential VAT tax policy implemented in Yangshan FTZ

en.lgxc.gov.cn| Updated: May 5, 2021 L M S

Shanghai Integrated Logistics Management Co Ltd – a company based in the Yangshan Free Trade Zone, under the jurisdiction of the Lin-gang taxation administration – recently obtained the first invoice for value-added tax exemptions for logistics and storage services in the area.

This marked the official implementation of a preferential VAT tax policy, being rolled out to promote the development of logistics and storage enterprises in the Yangshan FTZ – located in the Lin-gang Special Area of East China's Shanghai.

The company became the first business to enjoy the VAT exemption policy and issued invoices for VAT exemptions totaling 1.95 million yuan ($ 301,470) in the month of February, reducing its tax burden by 110,000 yuan.

To effectively implement the new tax policy, the Lin-gang taxation administration ran a publicity campaign and issued leaflets with explanations. The effectiveness of the policy promotion was boosted through the use of an appointed publicity team and by using established communications channels.

After a preliminary selection, 22 enterprises in the bonded zone are set to enjoy the VAT exemption, with an estimated annual exemption of more than 50 million yuan.

Moreover, the Lin-gang taxation administration will continue to track the effects of the policy, to ensure that all eligible businesses can benefit from VAT exemptions.

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Shanghai Integrated Logistics Management Co Ltd obtains the first invoice of VAT exemption for logistics and storage enterprises. [Photo/WeChat account: shlgguanweihui]

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