Shandong Chenzhong Machinery Co., Ltd., which has been rooted in the manufacturing industry for more than 70 years, has grown from a traditional light industrial machinery manufacturer to a leader in the field of domestic paper and pulp equipment. Its development process is a vivid epitome of the tax and fee policies that accurately empower the upgrading of the manufacturing industry.
The Huantai County Taxation Bureau of the State Administration of Taxation focuses on the core development needs of manufacturing enterprises, builds a solid risk defense line, implements tax policies, upgrades service measures, and provides strong support for the county to accelerate the cultivation of new productive forces and build a modern industrial system.
Innovation and innovation: “traditional manufacturing” moves towards “hard-core intelligent manufacturing”
Accelerating technological self-reliance and cultivating new-quality productivity is not only the “key move” to break the bottleneck of enterprise development, but also the “first driving force” to lead enterprises to move towards higher quality and more sustainable direction.
“We have continuously increased investment in R&D, strengthened technological innovation, accelerated product iterations, deeply explored the international and domestic markets, optimized service guarantees, comprehensively enhanced the influence of the Chenzhong brand, spawned new productivity, and injected new momentum into the high-quality development of Huantai.” Yang Yongguo, deputy general manager of Chenzhong Machinery, said.
Chenzhong Machinery has adhered to its ingenuity and moved towards “newness” for many years. It has not only established industry-university-research cooperation with many key domestic universities, but also continuously increased its investment in research and development every year and obtained a number of patented products.
In this transformation process, the policy of super deduction of R&D expenses has become a key engine.
“The timely implementation of preferential policies has reduced our innovation costs and is an important support for the company’s continuous development.” said Hou Yuewei, head of finance.
In 2025, Chenzhong Machinery will enjoy an additional deduction of nearly RMB 10 million for R&D expenses, providing assistance for the company to further increase technological R&D.
Tax Rebate Escort: “Local Manufacturing” Heading to the “Global Market”
In the production workshop of Chenzhong Machinery, sparks are flying, the processing machine tools are running at high speed, the production site is in order, and the workers are rushing to make paper pulp equipment such as hydraulic pulpers, disc mills, and pressure screens.
With the expansion of markets along the “Belt and Road”, Chenzhong Machinery products are exported to Southeast Asia, the Middle East, Central Asia, Russia, Africa, South America and other countries and regions.
“The pre-orders for our products have been queued up to April, and the machines currently being produced are ready to be shipped to Nigeria and Vietnam. In 2025, the export tax exemption, tax refund policy will be applied, and the tax exemption and credit amount will be more than 5 million yuan.” Yang Yongguo introduced.
In order to help “going global” companies gain a foothold in the international market, the Huantai County Taxation Bureau has established a ledger for export companies, visited them regularly, figured out the pain points and difficulties of business operations, provided targeted assistance, and targeted export tax rebates and cross-border tax preferential policies for export companies, customized interpretation manuals, and carried out special counseling to ensure that dividends can be enjoyed directly and quickly.
At the same time, we carry out regular export tax refund risk reminders, guide enterprises to standardize customs declaration and inspection and other processes, accurately investigate the risks of false tax refunds, and maintain the bottom line of taxation.
Building a foundation for compliance: “Good coaching” to build a “safety line of defense”
As a large-scale manufacturing enterprise with an annual output of 150,000 tons of complete pulping production lines, Chenzhong Machinery involves many aspects such as raw material procurement, equipment production, installation and commissioning, export sales, etc., and has many compliance risk points.
“The tax department not only guided us through policies such as the super deduction of R&D expenses, but also simultaneously carried out full-process risk inspections, allowing us to quickly and steadily enjoy the tax benefits of real money, which further strengthened our determination to increase investment in R&D.” Hou Yuewei said.
Build the foundation with compliance and create the future with intelligence.
In order to guide manufacturing enterprises to build a solid foundation for compliance operations during their development and growth, the Huantai County Taxation Bureau focused on the compliance development demands of enterprises, launched a “risk physical examination” package, established an industry risk management team, visited key enterprises and industry associations, analyzed and explained policies such as super deduction of R&D expenses, understood the status of policy enjoyment, and promptly investigated credit deduction risks.
At the same time, it provides guidance to enterprises in standardizing the collection of various types of expenses, improving tax-related documentation, and guiding compliance declaration operations, effectively enhancing corporate compliance awareness and “protecting” corporate development.
In the next step, the Huantai County Taxation Bureau will continue to play its tax function, accurately implement tax policies, proactively upgrade service mechanisms, continuously strengthen compliance guidance, enhance corporate development confidence, enhance compliance awareness, and inject strong “tax power” into corporate development.
