An official of the Zhongshan Taxation Bureau inspected the Guangdong KSUN Hardware Production Co Ltd in East District on April 1, 2019.[Photo by Yu Zhaoyu]

Starting April 1, China will reduce the value-added tax rate that applies to manufacturing and other sectors from 16% to 13%, as well as the rate for construction, transport and other sectors from 10% to 9%. The policy also came into force in Zhongshan that same day.

On the morning of April 1, officials of the Zhongshan Taxation Bureau inspected the Guangdong KSUN Hardware Production Co Ltd in East District. The company's financial staff issued the first updated VAT invoice with its new system.

KSUN is a high-tech firm specializing in hardware R&D, production, and sales. "Based on the net sales of 49.27 million Yuan last year, the new policy is expected to help us reduce annual taxes of 363,000 yuan," said Yu Shanghai, President of the KSUN. "This will also reduce R&D risks and relieve the company of financial burdens," he added.