Tax-refund: In September 2016, the VAT and surcharges of approximately RMB920, 000 for the past three years were refunded to the client；

Tax-exemption: The client enjoyed exemption of VAT and surcharges starting from February 2016, resulting in over RMB 800,000 tax-savings per annum；

Value-added service: The valuable application for government subsidies was provided with optimization of the process to receive and settle foreign exchange.

(1) Customer background

Company Name: JBN Outdoor Products Technical Service (Shenzhen) Co,. Ltd.
Established in: 2011
Staff: more than 30
Divisions: Engineering, Quality, Procurement, Supply Chain and Admin & Finance
Operating Business: Primarily providing R&D service for its U.S. headquarter, and providing whole-process management service from procurement, supply chain management and tracking the delivery of product. Currently, the business shows a momentum of rapid growth.

(2) Customer’s demand

1. Safety and compliance
Based on the strong risk sensitivity of US headquarters, the management strictly complied with the tax laws in mainland China to pay tax, while did not want to pay any penny that was unnecessary. Therefore, BMI was required to assist it in enjoying such tax exemption and refund, subject to safety and legality.
2. Professional service
The client’s finance and tax businesses at home and abroad were outsourced to several professional finance and tax service agency. To maximize efficiency and value, and considering the professional service offered by BMI, the client’s management and professional service provider decided to entrust BMI to apply for tax exemption and refund after making assessment.
3. One-off information collection
High efficient working style was required by foreign-invested enterprises, so the management hoped that BMI could present all the information that needed it to provide at once, to reduce the communication cost among internal divisions.

(3) Risk Analysis

1. Lack of some necessary documents in the service contract entered with the overseas principal;
2. The completeness of the relevant information about cross-border service business;
3. Whether a few of good sales businesses can be accurately divided would affect the application for tax refund.

1. Assessment of the feasibility through special research
BMI dispatched in-house senior advisors to conduct on-site survey and discussed in detail with each division’s supervisor in respect of its background, product offerings, business, operation, etc. to fully understand the client’s situation and to make accurate judgment on the feasibility of tax exemption/refund benefits by reference to the relevant regulations.

2. Collection of information at once
To satisfy the client’s need, BMICS made a list of information in detail to fully collect the relevant information based on the past rich experience, which would maximize the efficiency.

3. Tailor-made solution on tax saving
Based on the client’s actual situation, BMICS provided a tailor-made solution on tax savings on legal basis. Subject to the principal of truth, certain terms in the contract were amended and supplemented. The key information about approval issued by the tax authority were obtained in a professional manner with the documents prepared for approval.

4. Full implementation of enjoying the preferential tax
Leveraging on its professional and experienced team, BMICS was responsible for answering any question for approval raised by the relevant departments of national and local tax authorities , providing the detailed information stating the client’s business operation, the legal basis and criteria of enjoying the preferential tax, following and coordinating the handling suggestions given by the tax authorities at city and district level and all-level departments as well as the responsible officer to promote the program.

5. Provision of value-added service on a continuous basis
Based on the full understanding of the client’s business, BMCS provided the client with a valuable application for government subsidies and focused on the government developments on a continuous basis. It also proactively designed a valuable preferential tax application for the client to strive for win-win outcomes.

5. Recognition of Experienced Peers