Zibo-based Qixiang Tengda Chemical Co Ltd handled the tax collection of 1,800 tons of goods on May 9 in Zibo, East China's Shandong province. According to the latest policies, the company can exempt tax deferred interest of about 50,000 yuan ($7,390).
The goods consist of mixed C4 chemicals which have been processed before sale in the country.
Tax deferred interest is the interest levied by customs on the tax levied by enterprises when they apply for processing trade bonded materials or finished products for domestic sale.
To promote the transformation and upgrading of processing trade and ease difficulties for enterprises, Zibo Customs is temporarily exempting tax deferred interest for the domestic sale of processing trade goods from Jan 1 to Dec 31, 2022.
Many Zibo companies have benefited from the policy.
"In the first four months of this year, we have exempted 870,000 yuan in deferred tax interest for domestic processing trade sales," said Xie Zhenglei, foreign trade manager of Qixiang Tengda Chemical.
In the first four months of this year, the value of domestic processing trade sales in Zibo reached 480 million yuan, while the domestic sales tax rose to 700,000 yuan, growing by factors of 8.5 and 5.1 year-on-year, respectively. The exemption of tax deferred interest amounted to more than 2 million yuan.
