Xiangzhou District, Zhuhai

A total of 503 high-tech enterprises in Zhuhai have enjoyed a combined corporate income tax reduction or exemption of 3.88 billion yuan ($565 million) this year, while 2,606 enterprises had 2.36 billion yuan ($344 million) in R&D expenses deducted from the taxable income.

Cai Xin, an executive of Zhuhai Netson Digital Technology, said that the company's added-value tax payment is estimated to drop by 150,000 yuan ($21,840) this year due to the lowered added-value tax rate. Medium and small-sized enterprises like it are able to invest the saved money into R&D, which can be deducted from taxable income, providing a double benefit.

Zhuhai Yunzhou-Tech is first domestic company committed to the R&D and production of unmanned boats. The proportion of deductible taxable income was increased from 50 percent to 75 percent of R&D expenses in 2018, which has helped the company save 1.07 million ($155,790) in tax payments. This year, it will increase sci-tech investment by more than 30 percent.

A Yunzhou-made unmanned boat on display [Photo by Zhong Fan / Zhuhai Daily]

Zhuhai's high-tech industries have been boosted by the tax reduction and exemption policies. Data show that the added value of high-tech enterprises, high-tech manufacturing industry, and advanced manufacturing industry in the city increased by 8.3 percent, 2.8 percent and 1.2 percent respectively from January to May.