China News Agency, Guangzhou, June 17 (Sun Qiuxia) BASF Greater China Senior Tax Director Jiang Lili said in an interview that BASF felt deeply in less than two years from the signing of the memorandum of understanding to the construction of the first phase of pile driving The tax authorities at all levels in Guangdong Province have deepened the determination and efforts to implement the “decentralization of service” and optimize the business environment, and have effectively improved the “predictability, predictability, transparency and trustworthiness” of taxation policies for enterprises.
BASF's integrated base in Zhanjiang, Guangdong, is the largest overseas investment project of the BASF Group to date and the first example of a "wholly foreign-owned enterprise in China's heavy chemical industry." The total investment of the project is expected to reach 10 billion US dollars, and when completed, it will become BASF's third largest production base in the world.
Due to the long construction period, numerous sub-projects, and complicated construction and production technical processes, the BASF integrated base involves a series of complex tax issues in the project construction, including the settlement of the project and the handling of tax-related businesses during construction, import of raw materials and terminals Consumption tax treatment of finished products, tax treatment of service fees for engineering and technical personnel coming to China, etc.
Jiang Lili pointed out that these tax-related issues have a significant impact on the construction of BASF integration projects. The Zhanjiang taxation department in Guangdong set up a professional team and chief liaison system at the early stage of project preparation to provide one-to-one and refined tax payment services for the BASF project, so that various tax-related matters can be resolved smoothly and efficiently. It is of great significance to promote the landing of the project and ensure the smooth operation of the project.
Xu Jie, Director of the First Taxation Branch of the Guangdong Provincial Taxation Bureau of the State Administration of Taxation, said that there are many procedures for major engineering projects from approval to construction to start of construction. If the taxation process and tax-related policies involved in each link are not comprehensive enough, taxation is likely to occur. Risks will even increase the company's operating costs. In particular, foreign-funded enterprises pay great attention to domestic tax policies, and urgently need the tax department to intervene in advance to provide targeted counseling.
Xu Jie introduced that major construction projects in Guangdong Province are generally contacted by the chief liaison officer at a higher level of the taxation department, which can reduce the level of communication between tax enterprises and quickly handle tax-related claims of enterprises.
It is reported that in the early stages of preparation for the construction of the BASF integrated infrastructure project, it was proposed that after the project was put into production, the flow of imported naphtha consumption tax would be optimized and then retreated, so as to reduce the pressure on enterprises to occupy funds. In response to this demand, the Guangdong taxation department is coordinating and communicating with relevant departments in an effort to further shorten the time limit for BASF’s import tax on naphtha consumption tax to be “first collected and then refunded”. (Finish)