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Liaoning Tax Authorities' Business-Friendly Measures: A Guide for Foreign Founders
Learn how Liaoning's tax system is improving services for taxpayers, with practical takeaways for foreign entrepreneurs setting up or running a company in China.
Liaoning Tax Authorities' Business-Friendly Measures: A Guide for Foreign Founders
Foreign founders considering establishing or operating a company in China should be aware of ongoing efforts by local tax authorities to improve services and resolve taxpayer challenges. A recent report from the Liaoning Provincial Tax Service highlights initiatives that can directly impact your business. Here’s what you need to know, based on official information.
Focus on Learning and Service Improvement
Since the second batch of the thematic education campaign began, Liaoning’s tax system has prioritized learning and practical action to better serve taxpayers and fee payers. The provincial tax bureau has emphasized aligning tax work with the needs of businesses, aiming to create a more supportive environment. For foreign founders, this means tax officials are being encouraged to understand and address the difficulties companies face.
Xu Guanglie, head of the Liaoning Provincial Tax Bureau, stated that the focus is on solving problems for taxpayers and delivering tangible benefits. This approach includes improving policy implementation and services to help enterprises thrive.
Practical Measures for Taxpayers
Across Liaoning, tax departments are implementing concrete steps to enhance service quality. For example:
- Chaoyang City: Tax authorities use various learning methods to ensure officials fully grasp policies, which can lead to more consistent application.
- Dandong City: Party members and officials have proposed 97 improvement measures, all of which have been implemented. These measures aim to enhance tax and fee service quality.
- Yingkou City: The tax bureau offers "one enterprise, one policy" tailored services, including precise policy guidance for heating companies to ensure they receive tax benefits. This approach can be adapted for other industries.
- Huludao City: An intelligent "question-and-handling integrated" window has been set up to address complex tax issues. Since the campaign began, it has handled over 50 such cases with a 100% satisfaction rate.
These initiatives reflect a broader push to make tax compliance easier and more efficient for businesses.
On-Site Problem Solving and Policy Implementation
Senior tax officials are visiting companies to experience tax processes firsthand and resolve issues. In Benxi City, for instance, tax leaders visited a float glass company to check policy implementation, assess whether policy notifications are accurate, and address problems related to policy understanding and documentation. Such visits demonstrate a proactive approach to ensuring businesses receive available benefits.
Additionally, Liaoning’s tax system has been advancing the construction of "Fengqiao-style" tax offices, modeled on a national guideline. These offices aim to resolve tax disputes quickly and protect taxpayers’ rights. In Fuxin City, 38 tax offices and service halls have been standardized, with special windows and rooms established to handle tax disputes efficiently.
Tax and Fee Reduction Policies
A key focus is the implementation of tax and fee reduction policies. Liaoning has deepened the "no-application, enjoy directly" reform, making it easier for businesses to receive benefits without cumbersome procedures. Since last year, the province has added tax and fee reductions, as well as refunds and deferrals, totaling over 20 billion yuan. This has helped alleviate burdens and boost confidence for various market entities.
For example, a molybdenum company received over 70 million yuan in VAT refunds, which significantly eased its funding difficulties. Such policies can be particularly beneficial for foreign-invested enterprises in capital-intensive industries.
Support for Major Projects and Financing
Liaoning’s tax authorities have also introduced a "project butler" service mechanism. Since the campaign began, 1,237 tax officials have provided dedicated services to nearly 400 major projects, resolving over 300 practical issues and implementing tax and fee benefits exceeding 1 billion yuan. This service helps ensure that large-scale investments, including those by foreign companies, receive tailored support.
Moreover, the "bank-tax interaction" initiative helps solve financing difficulties for enterprises. By leveraging tax payment records, businesses can access bank loans more easily. This can be a valuable resource for foreign founders seeking funding for their operations in China.
In Shenyang, a commercial complex project faced cash flow issues and encountered problems with its first application for deferred tax payment due to an operational error. The local tax office’s project butler team provided detailed guidance and follow-up, quickly resolving the deferral of over 70 million yuan in taxes. This case illustrates how tax authorities can assist businesses in navigating procedural challenges.
Looking Ahead
Liaoning’s tax system plans to continue integrating thematic education with tax work, further improving services and policy implementation. For foreign founders, this signals a commitment to creating a more predictable and supportive tax environment. However, it’s essential to stay informed about local regulations and utilize available services.
Foreign entrepreneurs can benefit from these measures by engaging with local tax authorities, seeking guidance on available incentives, and utilizing digital service channels. As always, consulting with local experts is advisable to ensure compliance and maximize benefits.
Call to Action: For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.