Winter after Huoerguosis rapid expansion: suspension of 2 local preferential tax policies

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 Winter after Huoerguosis rapid expansion: suspension of 2 local preferential tax policies


In October 13th, tourists took photos at Huoerguosi port. As an important trading port in the northwest border area of China, many tourists are attracted here.

In October 14th, a sign of technology company was hung on the windows of households in a district in Huoerguosi.

In October 15th, the taxi driver in Huoerguosi China and Kazakhstan cooperation center was waiting for the guests.

In October 11th, the Huoerguosi administrative service hall, merchants in consultation business.

In October 13th, a citizen rode through the centre of Huoerguosi. Many shops on the roadside were leased by finance companies.

A man looks at a movie town in Huoerguosi on October 15th.

On October 15, 2018, temperatures plummeted by more than a dozen degrees Celsius, the mountains in the distance of Horgos were covered with silver, and people in the city said, Seeing the white hillsides, Horgos is about to snow.

Fu Shengwen (not his real name) from Shangqiu, Henan Province, drives his taxi slowly along the main road of Horgos. He repeats the same route every day, either from the duty-free zone to the station or from the duty-free zone to the hotel, always passing the supermarket where his wife works and the street where his son is on duty. The border town of more than 80,000 people has only one main road and 67 branch roads, and it takes less than 20 minutes to drive around. Any road to the West may end on the Sino-Kazakh border.

Silk Road Station

Located in the northwest border of China, Horgos is a county-level city under the jurisdiction of the Kazakh Autonomous Prefecture of Ili. It is only more than 300 kilometers away from Almaty, the capital of Kazakhstan, and can be reached within a few hours by car.

This Mongolian means the place where the camels pass by and Kazakh means the place where the wealth is accumulated. It has been an important post on the ancient Silk Road since ancient times. In the early days of new China, it became the largest port in the west of Sino Soviet trade. In early 1989, Huoerguosi opened international shuttle buses from Yining to Kazakhstan and opened to third countries. Later, the western development strategy put forward that Xinjiang issued a policy to levy a 15% reduction and exemption rate of enterprise income tax on eligible enterprises between 2001 and 2010.

In 2010, Horgos set up a national-level economic development zone. According to relevant policies, enterprises newly established in Horgos from 2010 to 2020, which conform to the Catalogue of Preferential Enterprise Income Tax for Developing Key Encouraged Enterprises in Difficult Areas of Xinjiang, will be exempted from enterprise income tax within five years, and will be exempted from enterprise income tax for five years after the expiration of the term. Part.

Rapid expansion

According to the Statistics Bureau of Ili State, at the end of 2015, there were 859 registered enterprises, 2490 registered enterprises in 2016 and more than 8500 registered enterprises in January-September 2017.

Large-scale explosive growth of new enterprises, mainly concentrated in advertising, film and television media, equity investment, electronic technology and other places of operation without geographical restrictions of light assets enterprises.

Su Feng, a Wuxi resident (not his real name), opened a hotel in Horgos last year. Every day the hotel was full, mostly mainland businessmen from a registered company in Horgos. Financial companies that help register companies have sprung up overnight. A few steps along the streets can see a newly opened finance and taxation company. Su Feng also registered a finance and taxation company with his hotel address. Ill give him a cut and go first. Su Feng smiled and said, Ill give him an advertisement first when I come to the store.

But this year the policy has changed, people are few, and my company is also yellow. Su Feng set up a teahouse in the hotel, often drinking tea with the mainland friends. At the best of times, theres a tax company thats going to rent all the rooms in my hotel to a registered company.

Looking forward to the future

You see, this building has been built for nearly two years, all of which are used by office buildings and registered companies. Fu Shengwen pointed to the high-rise building being built on both sides of the road. My neighborhood was also a company, basically every building has. But most of them are hung up with a brand. It doesnt seem to be allowed now. The location of the company must be a business building.

In early 2018, Huoerguosi suspended the two local policies of VAT refund and personal income tax preference. In April, enterprises were required to register one location, one photo and entity offices, and 2118 enterprises were asked to check their own taxes.

Fu Shengwen, 59, came to work in Horgos in 2001. Ive been here for more than ten years, and now I can earn 500 or 600 yuan a day. My wife and children have stable jobs. The house has also risen from more than 1,000 yuan a square meter to more than 4,000 yuan. Whats more, I cant earn 100 yuan a day when I first came here?

Why do movie stars build up companies in Huoerguosi? The answer is here.

Recently, with the film and television industry tax collection and management strengthened, the western border town of Horgos has become the focus of public opinion. According to media reports, since June, more than 100 Holgos film and television companies have applied for cancellation, including Feng Xiaogang, Xu Jinglei and other well-known artists as legal persons and shareholding enterprises. Where is Huoerguosi? What magic can this small town of less than 100,000 people attract so many movie and television star companies to pile up?