Preferential tax policies key to innovation gains in Lingang

Li Xinran
A 15 percent enterprise income tax for four key industries and rebate policy for foreign shipping are designed to achieve innovation breakthroughs.
Li Xinran

A preferential 15 percent enterprise income tax policy for four key industries – integrated circuits, artificial intelligence, biomedicine and aerospace – is one of the key factors applied to drive innovation breakthroughs in Lingang.

The others include a tax rebate policy for international transport ships and a value-added tax exemption for transportation and other service industries in the special comprehensive bonded area.

A total of 132 enterprises have been certified as qualified, and the accumulated tax reduction amount is about 1.2 billion yuan (US$177 million), according to Lingang Special Area Administrative Committee.

"The implementation of the 15 percent enterprise income tax preference not only allows businesses to enjoy the policy dividend from settling in Lingang, but also helps us feel the government's determination to support the development of relevant industries," Qian Qianying, executive financial director of SenseTime Technology, told Shanghai Daily on Wednesday.

Qiao Jingwen, chief of Lingang's finance division, said that even startups, if they meet the four key industries category criteria, will be able to enjoy the 15 percent tax.

Compared with Singapore, Dubai and other port cities, Lingang not only has world-class excellent ports, but also a vast market in the Yangtze River Delta region and the vast hinterland of the Yangtze River Basin, said Hu Yijian, president of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics.

"Lingang needed to be more innovative in its tax policy for offshore trade to telegraph greater openness to the outside world and to achieve higher-quality economic development," said Hu.

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