How can chemical suppliers reduce taxes?

Empathy response: As a chemical enterprise operator in Wuxi, your concern about how to comply with regulations and reduce tax burdens is worthy of recognition for your sense of responsibility.
Core conclusion: Wuxi chemical suppliers can significantly reduce their comprehensive tax burden within a legal framework by fully utilizing R&D additional deductions, splitting high tax rate businesses, and optimizing supply chain input deductions. Some companies can save hundreds of millions of yuan in taxes annually through business splitting.
1、 Accurately apply tax preferential policies (focus on strengthening)
Additional deduction for research and development expenses
Chemical manufacturing enterprises can enjoy 100% additional deduction if they carry out research and development of new catalysts, environmentally friendly materials, etc. For example, a certain Wuxi enterprise with an annual R&D investment of 20 million yuan can deduct 40 million yuan before tax, directly reducing the taxable income.
High tech Enterprise Certification
After eligible enterprises apply for the qualification of “high-tech enterprise”, their corporate income tax can be reduced from 25% to 15%. It is recommended to focus on the construction of patent reserves and research and development systems.
Accelerated depreciation of environmental protection equipment
The accelerated depreciation method can be used to purchase environmental protection equipment such as sewage treatment and VOCs treatment, in order to achieve cost amortization in advance and alleviate the pressure of tax burden in the early stage.
2、 Business structure optimization (with strong practicality)
Split of Fuel Processing and Finished Product Sales Business
If the enterprise engages in both naphtha sales and ethylene production, they should be accounted for independently: the portion used for production can be exempted from consumption tax. A certain enterprise has achieved an annual consumption tax of over 3.8 billion yuan through this method.
Avoid abnormal tax burden warning
The early warning tax burden rate for corporate income tax in the chemical industry is 2%, and if it is lower than this value for a long time, it is easy to trigger inspections. Suggest maintaining a healthy tax burden range through real cost allocation and reasonable profit planning.
3、 Supply Chain and Input Management (Basic but Key)
Prioritize selecting raw material suppliers who can issue 13% value-added tax special invoices to ensure sufficient deduction of input.
For small-scale suppliers, they can be encouraged to issue special invoices on their behalf or jointly purchase to enhance their bargaining power.
Establish a compliance review mechanism for invoices to prevent the risk of issuing false invoices.
4、 Local Smart Taxation Dividend (Wuxi Exclusive Convenience)
Using the “Afu Tax Pass” platform to achieve:
Remote assistance: Tax related issues resolved through “screen to screen” processing, with an average processing time reduced to within 2 minutes
1 official website.
One click declaration: The pre filling rate for enterprise income tax declaration is over 90%, saving 6 minutes per declaration and over 180000 hours of annual declaration time in the city.
Accelerate export tax rebate: Foreign trade enterprises can enjoy a shortened tax rebate payment cycle, which accelerates the return of funds.