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Guangdong relieves 69.3 billion yuan in taxes

By Qiu Quanlin in Guangzhou | chinadaily.com.cn | Updated: 2020-05-26 13:43
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Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing, China, March 30, 2016. [Photo/Agencies]

Guangdong province, an economic powerhouse in South China, realized a tax and administrative fee reduction of up to 69.3 billion yuan ($9.7 billion) in the first quarter of this year, helping local companies better resume their business amid the COVID-19 outbreak, according to local taxation authorities.

The reduction included 27.9 billion yuan from preferential policies designed for local businesses to help resume operations in the first three months, and 41.4 billion yuan following last year’s tax-cutting policies.

Local taxation authorities have joined hands with financial organizations to issue credits worth 17.78 billion yuan for 2.46 million companies in the first quarter.

Also, tax rebates worth of 79.04 billion yuan were given to local export-oriented businesses in the first four months of this year.

"The tax reduction has helped reduce financial burdens, allowing us to invest more in technology research and development," said Lin Xiaohong of Guangzhou CloudWalk Technology Co Ltd.

The company, based in Nansha of Guangzhou, capital of Guangdong province, is the biggest supplier of visual identification systems for domestic banks and airport security, with its face and image recognition and analysis technology.

The company, which plans to invest 40 million yuan in research and development, will have a tax deduction of 10 million yuan in its corporate income tax, according to Lin.

The company plans to build a science research and innovation center in Nansha, part of the Guangdong Pilot Free Trade Zone.

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