Jinlong Electric Motor: Tax Policies Support Businesses, Giving Them Wings to Transform and Upgrade

Tax policies empower enterprises to soar in their transformation and upgrade.

　　Taizhou Local Taxation Bureau Supports Zhejiang Entrepreneurs in Entrepreneurship and Innovation, Boosting Enterprise Development.

　　□ Correspondents Peng Xiaolin and Wang Binbin

　　Early morning report: "These equipment upgrades wouldn’t have been possible without the support from the local tax authorities," exclaimed Ye Jinwu, Chairman of Zhejiang Jinlong Motor Co., Ltd., recently while accompanying staff from the Taizhou Local Tax Bureau on a tour of the company’s factory premises.

　　It is reported that Jinlong Motor's annual output value has surged from over 60 million yuan in 2001 to more than 700 million yuan today, with equipment investments exceeding 170 million yuan. Meanwhile, the company’s product lineup has expanded dramatically—from over 100 varieties to more than 1,500 models and specifications. Notably, high-tech products now account for over 90% of its offerings, solidifying Jinlong Motor as a prominent player in China’s medium- and small-sized electric motor industry. This remarkable growth would not have been possible without the supportive backing of the nation’s tax policies, as well as the dedicated assistance provided by the local tax authorities.

Tax policies help businesses upgrade

　　As a vice-chairman unit of the China Small and Medium-sized Motor Industry Association, as well as a vice-president unit of both the Zhejiang Province and Shanghai Motor Associations, and a renowned enterprise in China's small and medium-sized motor industry, Jinlong Motor has consistently been keeping pace with global trends in equipment upgrades.

　　"Over the past few years, the company has invested 170 million yuan in equipment upgrades, giving us robust technological capabilities and cutting-edge development methods. We now boast the most advanced production facilities in the national motor industry, along with world-class testing facilities and a comprehensive, modern management system," said Ye Jinwu. "The company allocates between 10 to 20 million yuan annually to R&D expenses. Thanks to the proactive implementation of tax incentives by the local tax authorities—such as the additional deduction for expenses related to technological upgrades and new product development—we’ve received strong support for our growth, significantly reducing production costs and enabling us to further intensify our R&D efforts."

　　It is understood that the Luqiao Local Tax Bureau of Taizhou City has provided robust tax policy support for Jinlong Company's equipment upgrades, enabling the company to benefit from preferential measures such as the corporate income tax credit for investments in domestically produced machinery and equipment. With the support of the local tax authorities, Jinlong Company has significantly reduced its R&D costs and successfully developed a range of low-energy, high-efficiency motors. The widespread adoption of these energy-efficient motors has become Jinlong's most significant contribution to energy conservation, emission reduction, and giving back to society.

　　Currently, China's annual新增 motor capacity reaches 150 million kilowatts, bringing the total capacity to over 700 million kilowatts. The country's annual electricity consumption from motors exceeds 2 trillion kilowatt-hours, accounting for approximately 60% of the nation's total power usage. If all existing conventional motors were replaced with high-efficiency models, it could save at least 60 billion kilowatt-hours of electricity each year—nearly equivalent to the entire annual output of the Three Gorges Dam. This would also translate into an annual energy-saving capacity of more than 25 million tons of standard coal, while simultaneously reducing carbon dioxide emissions by over 50 million tons.

Multiple parties assist enterprises in overcoming the crisis

　　In recent years, the international macroeconomic environment has been complex and volatile, global economic growth has remained sluggish, many businesses have collapsed, and unemployment rates have risen.

　　Against this broader backdrop, Jinlong Company’s development has also been significantly impacted. At this critical juncture, the Luqiao Local Tax Bureau extended numerous preferential policies to Jinlong Company. These successive tax benefits represent the local tax authorities’ most substantial support in helping the company regain confidence and navigate through these challenging times.

　　"You could say that these preferential policies provided by the local tax authorities helped us navigate the challenges of the financial crisis," Ye Jinwu commented.

　　At the end of June this year, staff from the Luqiao Local Tax Bureau braved the scorching heat to visit Jinlong Electric Motor. They toured the company's production workshops, carefully listened to reports from the company's leadership, and systematically analyzed and studied each issue identified. In doing so, they helped the company address challenges related to its planned IPO, boosting the enterprise's confidence even further.

　　Wang Linggang, head of the Jinqing Branch of the Luqiao Local Tax Bureau, said: "As the main driving force behind economic development, how enterprises can overcome current obstacles to growth and take the lead in transforming and upgrading is a question that local tax officials are carefully considering. This year, we launched the initiative 'Visiting Factories and Enterprises to Help Resolve Their Challenges,' maintaining close ties with 100 key, pillar enterprises through regular field visits. Staff from the Enterprise Division now connect with these companies at least twice a month and conduct quarterly on-site visits, effectively establishing a robust system for tax-enterprise communication and engagement."

Lanxi:

"Three Services" Enhance Efficiency

　　□ Correspondents: Pan Xueqin, Zhang Chengfeng

　　Early this morning, the author learned from the Lanxi Municipal Local Tax Bureau that, in order to enhance the effectiveness of tax services, the bureau has launched three key initiatives: "convenient," "efficient," and "standardized" services.

　　First, we will implement "Convenient Services." Leveraging the TaxFriend Long Version system, we'll introduce a "one-stop" service model for tax collection and management in second-hand property transactions, while also phasing out the handwritten declaration forms for the "Contract Tax, Land Tax, and Local Levies." At the tax service counter, taxpayers handling second-hand property transfers will receive free access to document verification services. Additionally, dedicated windows will be set up to prioritize service for seniors and people with disabilities. A 24-hour appointment system will also be implemented, ensuring that urgent matters are handled promptly.

　　Second, we are advancing "efficient service." We are reshaping the processing procedures for tax-related matters, simplifying steps such as enterprise name changes, equity transfers, adjustments to registered capital, and accounting certificate updates—from processes that once required a commitment period to now being handled immediately, enabling taxpayers to file and complete their applications anytime. Each branch office has systematically reviewed, broken down, and implemented specific services, including on-the-spot completion of tax-related tasks, time-limited processing, and paperless services. In the first half of this year, the bureau has already rolled out 131 on-the-spot services and 117 time-limited services across 8 categories, while also piloting 50 paperless services—dramatically boosting both efficiency and service quality. Meanwhile, at the service counters, in addition to continuously refining existing systems like the First-Contact Responsibility System, Immediate Completion System, and Service Commitment System, the bureau has fully introduced the All-in-One Tax Service Model.

　　Third, strengthen "standardized services." Enhance the tax collection and administration oversight mechanism, ensuring that window staff rigorously review all documentation when handling tax-related matters. Standardize the tax exemption declaration procedures for second-hand property transfers, and reinforce collaborative efforts with departments such as Land Resources and Construction, thereby streamlining tax collection and administration.

Tongxiang:

"Multi-level Visits" Bring Results to Villages, Enterprises, and Communities

　　□ Correspondent Wu Xinmiao

　　Early morning report: Since the beginning of this year, Tongxiang Municipal Local Tax Bureau has carried out a series of multi-level outreach activities, including regular, fixed-point, and routine visits; targeted visits to key tax-source enterprises; and personalized one-on-one engagements. These initiatives have yielded notable results and have been warmly welcomed by taxpayers across the board.

　　Implement regular, fixed-point visits on a routine basis. Establish a system where leaders are paired with specific enterprises, and assign outstanding cadres to form dedicated service teams. These teams will conduct periodic, site-specific visits to 69 companies, helping them tackle pressing challenges. To date, they have provided a total of 276 consulting services to these businesses. During the visits, three major challenges were identified—enterprise tax burdens, electricity supply issues, and the overall business environment—along with 25 specific problems. All of these issues have now been included in a coordinated action plan for resolution.

　　Conduct targeted visits to "key tax source enterprises." For the 617 key tax source enterprises, four specialized plans with eight specific measures have been developed, and six working groups have been established. A total of 126 cadres and staff members have been mobilized to address 37 practical issues, such as upgrading enterprise invoicing software. While delivering policies and services, we are also emphasizing the promotion of lawful business operations and the principle of honest tax compliance, helping enterprises enhance their sense of responsibility toward tax obligations under the law.

　　Conducting "one-on-one" personalized outreach visits. Six branch bureaus have identified specific individuals for "one-on-one" door-to-door service, and established three specialized teams focusing on tax and fee policies, tax administration operations, and technical services—each dedicated to delivering tailored taxpayer assistance. These teams have clearly defined their responsibilities, refined operational procedures and key service points, and are actively gathering taxpayer feedback through multiple channels while meticulously documenting all input. Based on this targeted approach, customized guidance policies have been developed to ensure that every aspect of "personalized taxpayer service" is assigned to a specific individual and effectively implemented. As a result, a total of 52 suggestions and recommendations were collected, and 19 practical tax-related issues have already been resolved.

Ryan:

Actively explore new approaches to tax services

　　□ Correspondent Cai Yan

　　Early this morning, the author learned from the Rui'an Municipal Local Tax Bureau that, in order to enhance taxpayer service quality, the bureau has introduced a series of innovative tax service models, including setting up "clinics" specifically for taxpayers.

　　Opening the doors to provide on-site consultations, we’ve established a "clinic" specifically for taxpayers. We’ve launched personalized tax services featuring "weekly outpatient visits" and "monthly joint consultations." During the "weekly outpatient" sessions, teams composed of deputy directors and key personnel from each branch office are stationed at the tax service halls, promptly assisting taxpayers in resolving various tax-related challenges. Meanwhile, the "monthly joint consultation" initiative sees the Ruian Municipal Local Tax Bureau addressing industry-specific or city-wide tax issues—those that couldn’t be resolved during the weekly sessions—through focused, systematic discussions. This approach ensures that taxpayers’ most pressing concerns are tackled comprehensively. Since the program’s launch, we’ve conducted "weekly outpatient" sessions covering more than 20 industries, including tourism, construction, and catering, while holding "monthly joint consultations" for 10 additional sectors. Together, these efforts have helped taxpayers tackle over 2,000 tax-related issues, such as effectively implementing tax incentive policies.

　　Online tax communication builds a "bridge of dialogue" for taxpayers. In addition to continuing to promote initiatives like the "Tax-Employee QQ Group" and "QQ Tax Officer," this year the bureau has also successively rolled out service methods such as "Tax-related Weibo" across its various branch offices. These platforms promptly share the latest tax policies and relevant information, allowing taxpayers to connect with each other while also exchanging insights from their daily work, personal lives, and learning experiences—effectively fostering closer relationships through genuine empathy and understanding.

　　Conducting regular inspections of service halls to ensure taxpayers receive excellent "service." Through rigorous assessment and selection, we’ve assigned one taxpayer service management officer to each of the four larger grassroots sub-bureaus. Based on the specific responsibilities of these officers, we’ve established a comprehensive taxpayer service inspection system, carrying out thorough daily checks at tax service halls—ensuring that "inspection content is complete, inspection targets are clearly defined, enforcement actions are robust, and corrective measures are effectively implemented." Additionally, we’re rolling out a "tax service hall completion system" for certain tax-related approval processes, significantly boosting approval efficiency and making it more convenient for taxpayers.

　　Q: For motor vehicles operating or performing tasks within airports, ports, and railway stations—vehicles exempt from vehicle and vessel tax for five years starting from the date the "Vehicle and Vessel Tax Law of the People's Republic of China" came into effect—do they still need to purchase compulsory traffic insurance? If so, what documents should be provided to the insurance company in this case?

　　Answer: According to Article 2, Items 6 and 7, and Article 3, Item 4 of the "Announcement by the State Administration of Taxation and the China Insurance Regulatory Commission on Matters Related to the Withholding and Remittance of Vehicle and Vessel Taxes for Motor Vehicles" (State Administration of Taxation & China Insurance Regulatory Commission Announcement No. 75 of 2011), motor vehicles operating or conducting operations within airports, ports, and railway stations that are exempt from vehicle and vessel taxes for five years starting from the date of implementation of the "Vehicle and Vessel Tax Law of the People's Republic of China" must present a tax exemption certificate issued by the tax authorities to the insurance institution when purchasing compulsory traffic insurance. Otherwise, the insurance institution will still withhold and remit the vehicle and vessel tax on behalf of the government when selling the compulsory traffic insurance policy.

　　Q: Can a real estate development company be exempt from paying land use tax on the portion of its commercial housing project that includes the construction of affordable rental housing and economically viable housing?

　　Answer: According to the "Notice from the Ministry of Finance and the State Administration of Taxation on Tax Policies Related to Low-Rent Housing, Economically Affordable Housing, and Housing Leasing" (Cai Shui [2008] No. 24), land used for the construction of low-rent housing, economically affordable housing, as well as land leased by operators of low-rent housing projects to eligible beneficiaries at government-regulated prices, is exempt from urban land use tax. Additionally, if developers build low-rent housing as a complementary feature within economically affordable housing or commodity housing projects, or construct economically affordable housing as part of a commodity housing project—and can provide relevant documentation issued by government authorities—they may be exempt from the urban land use tax that would otherwise be payable by the developer, based on the proportion of low-rent housing or economically affordable housing floor area relative to the total building area.

　　■ Tax Doctor