According to Mande Enterprise Services, the great prosperity of the film and television industry in recent years has a lot to do with Horgos. Local government tax incentives have not resulted in actual wealth losses. Instead, corporate profits are retained and used to reinvest in production, thereby creating greater benefits.

Film and television companies gather to register in Horgos

Horgos is located in Xinjiang and is a bridgehead and international channel for economic and cultural exchanges between China and Kazakhstan and other Central Asian countries. , is an important free trade zone and international transportation hub on my country's northwest border.

If you pay less taxes, the company's profits will naturally increase. How much does it cost to register a company in Xinjiang? It usually only costs a few thousand yuan. If you include various costs, it only costs hundreds of thousands. Registered companies usually entrust local business to agencies, urging them to adopt the most compliant practices and seek the most favorable policies. By helping clients reduce taxes, agencies can also receive a certain percentage of service fees.

The tax incentives in these two places in Xinjiang were unknown a few years ago, but they have suddenly gained momentum in recent years. Thousands of companies register locally every year. At the Beijing investment promotion conference, local officials revealed that there are dozens of newly registered companies in Horgos every day, and local officials are very busy and are serving the establishment of companies. If you think about it, you will know how much tax reduction these companies can get in one day, it will not be a small number.

The tax incentives in Horgos are based on national strategic arrangements

Many people will question this: Isn’t this a loss of tax revenue? How can we tolerate some people poaching tax revenue? ?

First of all, it must be clear that tax incentives are not an unauthorized claim by the Xinjiang local government, but are based on national strategic arrangements. In September 2011, the State Council issued the "Several Opinions on Supporting the Construction of Kashgar Horgos Economic Development Zone". The "Several Opinions" clarified that the State Council will take ten major measures such as providing financial subsidies and tax incentives to increase investment in Kashgar and Horgos Economic Development Zone. The policy support of Ergos Economic Development Zone. Among them, tax incentives will be implemented in these two places from 2010 to 2020. At the end of that year, the Ministry of Finance and the State Administration of Taxation formulated measures and listed a detailed industry catalog.

In other words, the tax incentives in Xinjiang are national strategies and their stability is quite high. As for whether the tax policy will expire after 2020? It is still uncertain, and this is where this policy is most questioned. Fortunately, the local government is also aware of this. They announced that the ten-year preferential policy of "five reductions and five exemptions" will be fully implemented even after 2020. Therefore, it is the practice of many companies to register their companies locally before the deadline. This is also the main reason why the number of enterprise registrations in Horgos has exploded in recent years.

The local government taxed less and did not cause actual wealth losses. Corporate profits are retained and used to reinvest in production, thus creating greater benefits. The film and television industry has experienced great prosperity in recent years, which has a lot to do with Horgos. The industry's profit margins suddenly increased, and they had more funds to reinvest. When we say tax revenue decreases and the country loses money, we only see the fiscal revenue.

Many people believe that the introduction of thousands of companies to Horgos every year is poaching from other provinces and cities across the country, which is unfair competition and harms the interests of brother provinces and cities. These claims are also deeply wrong.

It is true that almost all the companies registered in Horgos originate from other provinces and cities in the mainland; these companies operate in other provinces and cities, but pay very little tax, and part of the tax revenue flows to Horgos. This is also true and becomes the local government's fiscal revenue. However, without tax incentives, these companies would have no conditions to operate in the mainland. It is more likely that these companies will not exist at all, and neither will the "corporate income" on which taxes are based. Thanks to the tax incentives in the two places, these companies can survive. Although the local government does not receive much tax, these companies are actually creating jobs and prospering the local economy. This is the benefit that these two places in Xinjiang have brought to the mainland provinces and cities.

The tax depression attracts the tertiary industry to settle in

The biggest impact of Horgos on the Chinese economy is the prosperity of the tertiary industry. Those who come to Horgos to register companies are almost all from the tertiary industry, ranging from finance to film and television, culture, sports, and entertainment companies. Most of the small and medium-sized companies in the film and television industry are all from Horgos. This "abnormal" prosperity has caused dissatisfaction among many people. They believe that low taxes do no good, but allow speculative capital to run around and disrupt the Chinese economy.

This statement is also unreasonable. The reason why the tertiary industry enjoys the benefits of low taxes in Xinjiang first is purely because of its keen sense of smell and easy operation. These companies are at the forefront of information and finance and have a better understanding of national policies.

In fact, Xinjiang also welcomes investment from traditional enterprises, but due to market limitations, it is too restrictive to relocate factories to Xinjiang. In addition, traditional enterprises are usually large taxpayers and have close relationships with local governments. If you want to pay taxes to Xinjiang, you will face greater resistance. Emerging industries face relatively few such problems. As Horgos and Kashgar become more famous, the temptation of tax incentives will surely continue to attract companies. In the near future, more traditional enterprises will register in these two border cities.

Many years ago, economist Zhang Wuchang once praised China's "county competition."

He said that county heads and investment promotion bureau officials from thousands of counties and districts across the country have to go to all parts of the country to directly face entrepreneurs and promise them that taxes will be reduced and reduced as much as possible and supporting services will keep up as much as possible. They have only one purpose: Attract investment and develop the local economy.

Since more than ten years ago, under the background of unifying the national tax system and cracking down on collusion between government and business, county competition has gradually ceased. Now it only exists in some areas such as Horgos and Kashgar.

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