Jiangsu Kimou Chengxing Environmental Technology, founded in 2020 by Hong Kong's Kimou Environmental Technology Holding Limited in Taixing Economic Development Zone, processed a profit reinvestment tax credit, enjoying a tax credit of 3.06 million yuan ($432,184).
This marks the first successful implementation of profit reinvestment tax credit policies in Jiangsu province, transforming national incentives from "paper benefits" to tangible "financial gains" for enterprises.
The Kimou (East China) Surface Treatment Recycling Eco-Industrial Park, invested by Kimou Chengxing, falls under the encouraged categories in the national catalog of encouraged industries for foreign investment. The park has swiftly attracted over 40 enterprises in its first phase, driven by the big market within the Yangtze River Delta region and the park's rapid advancement.
Kimou (East China) Surface Treatment Recycling Eco-Industrial Park in Taixing, Jiangsu province. [Photo/WeChat account: txfabu]
To meet growing demand, shareholders initiated a 3-billion-yuan second and third phase expansion, enhancing the park's capacity. This reinvestment qualified for the tax credit policy, reducing their tax liability by 3.06 million yuan.
In June, the Ministry of Finance, State Taxation Administration, and Ministry of Commerce jointly announced policies allowing foreign investors to credit 10 percent of their reinvested profits against taxes from 2025 to 2028. Taixing's commerce bureau promptly identified eligible firms like Kimou Chengxing, providing tailored guidance to secure the credit.
Moving forward, the bureau plans to broaden its policy outreach efforts and offer personalized services, ensuring eligible enterprises see immediate benefits and boosting foreign investment in Taixing.