Since the beginning of this year, Guangzhou's Tianhe district has been promoting the implementation of preferential tax policies to help micro, small and medium-sized enterprises (MSMEs) in the manufacturing sector.

Shenzhen Maxonic Automatic Control has a branch in Tianhe. "The capital chain problem has been the main risk faced by the small and medium-sized enterprises (SMEs)," said Ma Hongmei, financial manager of Maxonic.

"After the extension of the tax holdover policy for SMEs this year, we immediately received the reminder message pushed by the tax bureau of Tianhe," Ma said, adding that these policies provide a guarantee for the daily operation of enterprises.

Maxonic has enjoyed a total of 1.04 million yuan ($149,214.93) indeferred taxes since last year.

Tianhe district. [Photo/WeChat account: gztzth]

Guangzhou Lifeng New Material Technology has been focusing on the R&D, production and sales of abrasives, ceramic abrasives and other products, but was put into a difficult situation due to large initial input and down-trending market sales.

"Fortunately, Tianhe has been concerned about usand support our development," said Li Liqin, financial executive of the company. "After the tax rebate policy was launched, Tianhe timely guided us to apply for this policy, effectively alleviating our financial pressure."

The company has enjoyed a total tax refund of 1.33 million yuan since this year.

According to their operating conditions, type and scale, needs, as well as characteristics, Tianhe has also been customizing tax policies for enterprises.

The increasing costs in transportation, installation and raw materials have resulted in delayed turnover of funds for Guangdong Yidinghao Furniture Co, another company in Tianhe. However since customized tax policies were provided, it enjoyed a total of 4.13 million yuan in additional deduction for R&D expenses in its income tax in 2021.