HAIKOU, January 15. /TASS/. The Hainan authorities will simplify the procedures for preferential taxation for exporting companies, announced the provincial administration.
The new rules are spelled out in a Notice of Experimental Tax Refund Policy for Shipping of Hainan's Free Trade Port companies, published by the customs, the Chinese Ministry of Finance and the Tax Administration. According to the statement, foreign trade organizations will be able to recover the funds that were withheld by the state in a much shorter period of time. What is more, the Chinese government is optimizing the very mechanism for reimbursing fiscal charges.
It is assumed that thanks to this innovation, enterprises based on Hainan and oriented to foreign markets will be able to significantly reduce costs and increase the competitiveness of their goods and services. These measures concern primarily the Yangpu special customs zone on the west coast of the Island of Hainan. It is expected that the optimization of tax procedures will lead to a noticeable increase in the turnover of this seaport, which, according to the plan of the top Chinese officials, in the coming years should become a key point of container shipping in East and Southeast Asia.
According to the statement, the relevant rules apply to logistics companies registered on Hainan, which will ship goods through the 15 largest Chinese ports listed in the document. These include such major transport hubs as Guangzhou, Dalian, Suzhou, Tianjin and Qingdao. The terminals located there can become both the initial and intermediate points of transportation. Thus, it is expected that exporters will be able to make changes in trade routes and more flexibly respond to changes in the market conditions.