All about business innvoation, finacial and tax, and digitalization
On April 17, 2024, the "Challenges and Responses Seminar for Chinese Enterprises Going Global in the European Union," jointly hosted by Zhong Lun Law Firm and Wolters Kluwer, was held at the Zhong Lun Beijing office. This seminar provided in-depth interpretations of important legislation and law enforcement issues concerning Chinese enterprises going global into the European Union. It also discussed crucial issues that would impact future business operations. Several representatives from well-known companies, including Fortune 500 companies, attended the event and engaged in discussions. Ms. Grace Shi, founding partner of ARTxDIGI (Beijing) Consulting Co., Ltd., was specially invited as an industry expert to deliver a keynote speech.
On November 16th, the 7th Silk Road International Expo and the China Western & Eastern Region Cooperation and Investment Trade Fair opened in Xi'an, Shaanxi Province. During the event, more than 20 important meetings and forums across four major categories were held. The Xi'an International Convention and Exhibition Center hosted six exhibition areas, including international exchanges, open platforms, regional cooperation, modern agriculture, advanced manufacturing, and modern services, showcasing the achievements of the Belt and Road Initiative and promoting international economic and trade expansion.
Most businesses initially rely on localized financial software to meet their daily accounting and tax management needs. As the business and organizational scales expand, and product lines rapidly diversify, the front-end business structures become increasingly complex. The traditional financial management model, which relies on contract payments for invoicing and accounting, struggles to meet the demands of business growth and regulatory compliance. At this juncture, companies require an integrated business and finance system to overcome key obstacles such as the disconnect between business and finance, budgetary loss of control, and compliance management, thereby providing more accurate decision-making support.
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Most businesses initially rely on localized financial software to meet their daily accounting and tax management needs. As the business and organizational scales expand, and product lines rapidly diversify, the front-end business structures become increasingly complex. The traditional financial management model, which relies on contract payments for invoicing and accounting, struggles to meet the demands of business growth and regulatory compliance. At this juncture, companies require an integrated business and finance system to overcome key obstacles such as the disconnect between business and finance, budgetary loss of control, and compliance management, thereby providing more accurate decision-making support.
The mutual and regional cooperation between China's "Belt and Road" Initiative and Saudi Arabia's "Vision 2030" has been strengthened through the signing of a joint construction implementation plan in December 2022. In December 2022, President Xi Jinping attended the first China-Arab States Summit and the China-Gulf Cooperation Council Summit in Riyadh, the capital of Saudi Arabia, and paid a state visit to Saudi Arabia. The heads of state of China and Saudi Arabia signed the "Comprehensive Strategic Partnership Agreement between the People's Republic of China and the Kingdom of Saudi Arabia." The two sides also issued a joint statement and signed the "Joint Construction of the 'Belt and Road' Initiative and 'Vision 2030' Alignment Implementation Plan" and cooperation documents in the fields of energy, investment, justice, education, and news. In the first half of 2024, during the meeting in Riyadh, China and Saudi Arabia announced an investment of 10 billion US dollars again and signed 30 contracts involving mining, technology, renewable energy, agriculture, real estate, mining, tourism, and health.
Saudi Arabia, a country located in the Middle East, is world-renowned for its abundant oil resources and vast land area. With a territory covering 2.25 million square kilometers, it is one of the largest countries in the Middle East. According to the latest data, the population of the country is approximately 36.2 million, with the labor force accounting for over 70%, indicating strong consumer potential and market vitality.
The economic growth rate of Saudi Arabia has averaged 3.5% over the past decade, with a Gross Domestic Product (GDP) reaching 1,108 billion US dollars and a per capita GDP of 31,850 US dollars. Despite facing certain unemployment challenges, Saudi Arabia remains a popular destination for foreign direct investment, attracting 78.86 billion US dollars in 2022. In the World Bank's Ease of Doing Business ranking, Saudi Arabia is ranked 62nd, showing significant progress in improving its business environment.
In terms of foreign trade, the bilateral trade relationship between Saudi Arabia and China is particularly close. Since 2001, Saudi Arabia has been China's largest trading partner in the Middle East, and China has been Saudi Arabia's largest trading partner since 2013. In 2023, the bilateral trade volume between China and Saudi Arabia reached 107.23 billion US dollars, with Chinese exports amounting to 42.86 billion US dollars and imports amounting to 64.37 billion US dollars. From January to August 2024, the bilateral trade volume between China and Saudi Arabia was 70.87 billion US dollars, with Chinese exports at 31.79 billion US dollars and imports at 39.08 billion US dollars. In 2023, Chinese companies' non-financial direct investment in countries participating in the Belt and Road Initiative reached 224.09 billion yuan, a year-on-year increase of 28.4%.
Belgium's tax policies, social security system, and compliance requirements form a comprehensive framework aimed at ensuring transparency and fairness. In terms of taxation, Belgium implements a standard VAT rate of 21%, with reduced rates for specific goods and services. Corporate income tax is levied at a rate of 25% on all companies, with small and medium-sized enterprises (SMEs) potentially eligible for a reduced rate. Social security contributions are shared between employees and employers, safeguarding the rights of workers. Additionally, Belgium has implemented a series of compliance requirements, including BEPS measures aligned with international standards, FATCA agreements, CRS standards, and AML regulations, to combat tax avoidance and money laundering, ensuring the integrity of the financial system. These policies and requirements not only promote economic stability in Belgium but also provide businesses operating in the country with a predictable and fair business environment.
Brussels, the capital of Belgium, is indeed a significant hub for international organizations like the European Union and NATO, which contributes to its status as an important center for economic activity in Europe. The city's strategic location and comprehensive transportation infrastructure have facilitated the development of a diverse economy, encompassing a wide range of sectors including manufacturing, transportation, high-tech industries, and services.
The incentives provided by the Belgian government, such as financial assistance, investment subsidies, and tax breaks, make the country an attractive destination for businesses. These measures have helped to foster a business-friendly environment that encourages both domestic and international investment.
Belgium's geographical position at the heart of Europe, with borders to four countries, enhances its role as a gateway to the continent. Its membership in key international organizations like the EU, NATO, UN, WTO, OSCE, and OECD underscores its commitment to global cooperation and economic integration.
The double tax treaties Belgium has established with over 150 countries, including the US and Hong Kong, are beneficial for international businesses operating in Belgium. These treaties help to prevent double taxation and can provide clarity and predictability for companies when it comes to tax obligations.
Overall, Belgium's stable political environment, high standard of living, and strong economic ties with other countries make it an appealing place for businesses to establish a presence in Europe.
For years, millions of small and medium-sized enterprises have been piecing together various applications to meet their operational needs, from accounting to order fulfillment, sales, and marketing, all facing a tangled web of outdated and complex applications. However, with such infrastructure, many growing businesses are unable to maintain and further accelerate their development. Forcing various applications together is not enough to provide the operational support businesses need, not only failing to offer many of the functionalities required by growing businesses, leading to a lack of real-time grasp of basic business information, but also prompting businesses to introduce more specialized systems or applications that are often isolated from each other, or to modify or automate certain business processes. Ultimately, complex applications bring a high degree of complexity, causing businesses to spend a lot of effort dealing with a large number of manual tasks and bottlenecks, facing higher risks and error rates, and ultimately damaging the customer experience.
Germany attracted international business projects worth €34.8 billion in 2023, according to the annual Foreign Direct Investment (FDI) study by Germany Trade & Invest (GTAI). This figure includes greenfield investments and expansions, but does not include any mergers or acquisitions. Compared to €25.3 billion in 2022, the annual growth rate for 2023 reached 37.5%, with the original number of FDI projects totaling 1,759. There are 11 projects involving planned investments of more than €500 million. Of these, 8 are greenfield projects, and 3 are expansion projects within Germany. There are 8 projects with planned investments exceeding one billion euros.
Oracle's NetSuite is adding a slew of new generative AI features. The bonus for customers? It will cost them nothing to get the new functions.
In recent years, both Saudi Arabia and the United Arab Emirates (UAE) have been actively working towards attracting and retaining exceptional individuals from around the world. To achieve this goal, each country has introduced its own long-term residency program – the Premium Residency Permit in Saudi Arabia and the Golden Visa in the UAE. These long-term visas not only provide holders with the opportunity to reside in their respective countries but also come with a range of privileges and conveniences, making them appealing to investors, entrepreneurs, and professionals seeking a long-term commitment. Let's delve into these two captivating long-term residency programs, exploring the attention and impact they have garnered on a global scale.
Dubai's real estate market has long been a focal point with its unique architectural styles and luxurious residential projects. As of January 2024, Dubai's real estate leasing transactions have surged fourfold, revealing several noteworthy trends and opportunities behind this rapid growth.
In the 5G era, the software industry will undergo a new round of transformation. The seemingly independent five major challenges actually have close internal connections. Whether it's driving the transformation and upgrading of existing businesses, actively exploring SaaS business layouts, or achieving scale expansion through acquisitions and mergers, companies will inevitably face certain issues.
According to recent data released by the Federal Statistics Office (Destatis), Germany is experiencing a sharp rise in both corporate bankruptcy applications and numbers. The preliminary annual report indicates a worrying trend in financial distress for both businesses and individuals.
In the late 1990s, “cloud” was not a word most people associated with technology. It was certainly not recognized as the future of software.
But a few visionaries saw the benefits and tremendous potential of delivering software over the internet. One of them, Oracle co-founder Larry Ellison, convinced entrepreneur Evan Goldberg of the promise of web-based software, leading Goldberg to launch NetLedger, the company that would become NetSuite in 1998.
Today, NetSuite’s cloud enterprise resource planning (ERP) system gives companies all the applications they need to run their businesses efficiently while nurturing growth. Organizations of all sizes and across dozens of industries run on NetSuite, harnessing the vast capabilities of its applications for finance, supply chain, customer relationship management (CRM), human resources, professional services, ecommerce and more.
Start-ups are often defined by innovation, youth, hardworking staff and long hours. Decisions made early on can have tremendous impact on the eventual success of the business from staffing, target customer, how much to put into marketing vs. product to the very name of the business.
Looking to make the finance team more efficient and improve business operations? Today’s enterprise resource planning (ERP) systems integrate and automate essential financial and operational functions and provide a trove of data insights from sources including general ledger (GL), accounts payable, accounts receivable, payroll and financial reporting. Modern ERP systems also help with inventory, order and supply chain management as well as procurement, production, distribution and fulfillment.
Inventory is stored materials that serve a current or impending need. Production and manufacturing organizations hold raw materials, finished items or works-in-progress to incorporate into new goods. Retailers stock finished or processed items to sell directly to customers.
When it comes to inventory accounting, the process of measuring the impact of inventory on a company’s balance sheet, there are a wealth of metrics to follow. Inventory Aging, Inventory Turn, Gross Margin by Item, Inventory Carrying Cost and others can all provide powerful insights into managing inventory, accounting for it and optimizing your supply chain and sales plans.
Inventory management is the practice of planning the buying, storing and selling of stock—whether it’s raw materials, parts or finished goods-to ensure the right type and amount of stock is available without holding excess stock and thereby tying up cash. When done correctly, inventory management saves companies money.
A rapidly growing company can quickly become entangled with a complex application landscape. When starting out, companies first install a simple accounting software such as so that they can manage their bookkeeping.
Inventory control, also called stock control, is the process of ensuring the right amount of supply is available in an organization. With the appropriate internal and production controls, the practice ensures the company can meet customer demand and delivers financial elasticity.
Financial management is the practice of making a business plan and then ensuring all departments stay on track. Solid financial management enables the CFO or VP of finance to provide data that supports creation of a long-range vision, informs decisions on where to invest, and yields insights on how to fund those investments, liquidity, profitability, cash runway and more.
Think of any global brand and they are almost certainly running their operations on an ERP system or integrated business platform. Small brands with aspirations to grow into mid-size organizations know that if they are serious about scale, they will eventually need a business software platform powerful enough to run its operations. It is the only way to minimize complexity and drive efficiency when you have many employees, products or locations.
Extended Producer Responsibility (EPR) is an environmental policy defined by the OECD that extends the producer's responsibility for a product beyond the consumption phase to the entire lifecycle, including design and disposal (waste collection and recycling).
When expanding your business into China, hiring local talent is crucial for success. But with different laws and cultural nuances, hiring your first employee in China can be a daunting task. In this blog post, we'll guide you through the process and give you tips for making your first hire a success.
As a business owner or entrepreneur, if you have been considering expanding your operations in China, it is important to understand the advantages and challenges of operating in this market. China is the world's second-largest economy, and its population of nearly 1.4 billion people presents a massive opportunity for businesses in various sectors. However, it is important to note that China's regulatory environment and business culture are significantly different from those in the West. In this article, we will explore the strategies for successful China business, including understanding China tax and accounting, navigating China's business culture, and choosing the right finance service provider in China.
ARTxDIGI's innovative "Business-Transformation-as-Service" provides a one-stop-shop for integrated financial and digital services, making digital transformation the key to business success for companies of any size and stage.
China has become an important market for businesses worldwide, but navigating the country's accounting and financial compliance regulations can be challenging. The Chinese government has implemented strict laws and regulations to ensure transparency and accountability in financial reporting. In this blog post, we'll explore the key accounting and financial compliance regulations that businesses need to comply with in China.
Private equity (PE) firms have long recognized the potential of China's fast-growing economy, and over the past decade, they have invested heavily in the country's private sector. Despite some challenges, China remains an attractive destination for PE firms seeking to capitalize on the country's economic growth and changing business landscape. In this blog, we will discuss the strategies that PE firms can adopt to manage their investments in China and the global market.
Collecting the latest policies
As global attention to sustainable development continues to rise, the China Securities Regulatory Commission (CSRC) and major exchanges have actively responded by promoting information disclosure by listed companies in terms of sustainability. On April 12, 2024, the Shanghai Stock Exchange officially released the "Guidelines for Self-discipline Supervision of Listed Companies on the Shanghai Stock Exchange No. 14 - Sustainable Development Reporting (Trial)" (hereinafter referred to as the "Guidelines"), marking an important step for China's capital market in terms of sustainable development information disclosure.
On February 1st, the State Administration of Taxation issued the "Announcement on Handling Matters concerning the Comprehensive Income Tax Settlement and Payment for Individuals in 2023", clarifying the service and administration matters related to the 2023 annual tax settlement.
Recently, the State Taxation Administration issued the updated version of the "Guidelines on Tax Policies for Stabilizing Foreign Trade and Foreign Investment." Building upon the previous versions, it organizes and updates relevant tax support policies and tax administration service measures to facilitate taxpayers' better understanding and application of the policies. This aims to create a favorable tax environment for the development of foreign trade and foreign investment.
Starting from January 11, the National Immigration Administration officially implements five measures to facilitate the entry of foreign nationals into China, removing obstacles for foreign individuals engaging in business, studying, and traveling, aiming to better serve and support high-level opening-up and promote high-quality development.
Um mit der kontinuierlich steigenden Inflationsrate fertig zu werden, hat die Bundesregierung zu Beginn des Jahres 2024 neue Richtlinien erlassen, die Sozialversicherung, Mindestlohn, persönliche Familienbeihilfen und andere politische Inhalte umfassen. Vor allem im Steuerbereich bringt die neue Regelung dem Steuerzahler neue Annehmlichkeiten und kann mindestens Hunderte Euro einsparen.
Recently, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, and the All-China Federation of Industry and Commerce jointly issued the "Notice on Strengthening Financial Support Measures to Help the Development and Growth of the Private Economy" (hereinafter referred to as the "Notice"), proposing 25 specific measures to support the private economy.
Recently, the State Taxation Administration issued the "Announcement on Optimizing Tax Services and Simplifying Reporting of Overseas Investments and Income-Related Information Reports for Resident Enterprises"
To further alleviate the tax burden on taxpayers, the policy regarding personal income tax on subsidies for foreign individuals is announced as follows:
In order to further alleviate the tax burden on taxpayers, the Ministry of Finance and the State Taxation Administration issued an announcement on the 28th, clarifying the continuation of the implementation of the annual one-time bonus individual income tax policy.
In March 2023, in order to further promote the application and implementation of electronic invoices, the State Archives Administration, together with the Ministry of Finance, the Ministry of Commerce, and the State Administration of Taxation, summarized the experience of three batches of pilot projects on the electronic reimbursement, accounting, and filing of value-added tax electronic invoices. In accordance with relevant national laws, regulations, and standards, they compiled the "Guidelines for Full Process Electronic Management of Electronic Invoices."
In order to implement the "Announcement of the Ministry of Finance and the State Taxation Administration on Further Supporting Tax and Fee Policies for the Development of Small and Micro Enterprises and Individual Businesses" (No. 12 of 2023, hereinafter referred to as "Announcement No. 12"), and to further support the development of individual businesses, the State Taxation Administration has issued the "Announcement of the State Taxation Administration on Further Implementation of Personal Income Tax Preferential Policies to Support the Development of Individual Businesses".
Actively attracting and utilizing foreign investment is an important part of advancing high-level opening-up to the outside world and constructing a new open economic system. In order to further optimize the foreign investment environment, enhance the level of investment promotion work, and increase the efforts to attract foreign investment, the following opinions are hereby put forward.
Beijing further encourages the establishment of foreign-funded R&D centers in accordance with the requirements of the "Circular of the General Office of the State Council Forwarding the Several Measures of the Ministry of Commerce and the Ministry of Science and Technology to Further Encourage the Establishment of Foreign-funded R&D Centers" (State Council Letter [2023] No. 7). The aim is to support the concentration and development of foreign-funded R&D centers in the city, promote a double increase in the quantity and level of these centers, enhance connectivity with global innovation resources, facilitate cross-border flow of innovation elements, accelerate the construction of an internationally competitive open innovation ecosystem, and provide support for the construction of Beijing as an international science and technology innovation center. To support this policy, the General Office of the State Council has issued several measures.
For a tax year, the portion of technology transfer income earned by resident enterprises that does not exceed 5 million yuan will be exempt from corporate income tax. The portion exceeding 5 million yuan will have the corporate income tax reduced by half.
For eligible small and medium-sized enterprise (SME) financing (credit) guarantee agencies, the following reserve funds can be deducted before calculating the enterprise income tax:
- The reserve for guarantee compensation, which is calculated at a rate not exceeding 1% of the year-end guarantee liability balance, is allowed to be deducted before enterprise income tax. Additionally, the remaining balance of the reserve for guarantee compensation from the previous year can be converted into current income.
- The reserve for outstanding liability, which is calculated at a rate not exceeding 50% of the annual guarantee fee income, is allowed to be deducted before enterprise income tax. Similarly, the remaining balance of the reserve for outstanding liability from the previous year can be converted into current income.
Taxpayers providing technology transfer, technology development, and related technology consulting and services are exempt from value-added tax.
For corporate venture capital enterprises that directly invest in seed-stage or early-stage high-tech enterprises (referred to as start-up high-tech enterprises) for a period of 2 years (24 months) or more through equity investment, they can deduct 70% of the investment amount from their taxable income in the year when the equity is held for a full 2 years. If the deduction is not fully utilized in the current year, it can be carried forward and deducted in subsequent tax years.
If a venture capital enterprise invests in unlisted small and medium-sized high-tech enterprises for a period of 2 years (24 months) or more through equity investment, it can deduct 70% of the investment amount from its taxable income in the year when the equity is held for a full 2 years. If the deduction is not fully utilized in the current year, it can be carried forward and deducted in subsequent tax years.
From January 1, 2019, to December 31, 2023, the self-used properties and land provided to incubating entities, either gratuitously or through rental or similar means, by national-level and provincial-level technology enterprise incubators, university science parks, and nationally registered co-working spaces, will be exempt from property tax and urban land use tax. The income obtained from providing incubation services to the incubating entities will be exempt from value-added tax.
Since the beginning of this year, in accordance with the decisions and arrangements made by the Party Central Committee and the State Council, the State Taxation Administration, in conjunction with the Ministry of Finance and other departments, has successively issued a series of tax and fee preferential policies that have been extended, optimized, and innovated. In order to facilitate the timely understanding of applicable tax and fee preferential policies by business entities, the State Taxation Administration has sorted out these extended, optimized, and innovated tax and fee preferential policies and compiled guidelines for them based on the subjects eligible for benefits, the content of the preferential measures, the conditions for eligibility, and the policy basis.
The employment and well-being of college graduates and young people are crucial for social welfare, economic development, and the future of the nation. In recent years, the Party Central Committee and the State Council have implemented a series of tax incentives to support the employment and entrepreneurship of college graduates and young people. The State Taxation Administration has organized the main tax preferential policies that support the employment and entrepreneurship of college graduates and young people, and has formulated policy guidelines to facilitate college graduates, young people, and a wide range of business entities in understanding the applicable tax preferential policies in a timely manner.
In order to consolidate and maintain the competitive advantage of China's new energy vehicle industry and accelerate the transition from being a major automobile country to a strong automobile country, in accordance with the relevant decisions of the State Council's executive meeting, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology have issued the "Announcement on Continuation and Optimization of New Energy Vehicle Purchase Tax Exemption Policy" (Announcement No. 10 of 2023, hereinafter referred to as the "Announcement"). The main consideration is to further leverage the role of tax incentives, guide relevant parties to seize development opportunities, promote technological innovation and product innovation, continuously enhance the core competitiveness of the industry, expand the consumption of new energy vehicles, and support the high-quality development of the new energy vehicle industry.
In order to better support the innovation and development of enterprises and in accordance with the requirements of thoroughly implementing Xi Jinping's thought on socialism with Chinese characteristics for a new era, the State Administration of Taxation and the Ministry of Finance have issued the "Announcement on Matters Related to Optimizing Prepayment Declaration and Enjoying Additional Deduction Policy for Research and Development Expenses" (No. 11 of 2023, hereinafter referred to as the "Announcement").
The "Overall Plan for the Construction of Hainan Free Trade Port" clearly states that "income derived from new overseas direct investment made by tourism, modern service industry, and high-tech industry enterprises in the construction of Hainan Free Trade Port before 2025 shall be exempt from corporate income tax."
In recent years, Hainan has followed the general principles of the "Overall Plan for the Construction of Hainan Free Trade Port" and issued more than 40 relevant regulations and important policies on the business environment, with the aim of establishing a free trade port with the coordinated development of business environment, government services, data sharing, and social credit. It has also released multiple preferential policies, including tariffs and personal income tax, as well as corporate income tax, to attract high-quality domestic and foreign enterprises and achieve rapid and high-quality development.
To implement the decisions and arrangements of the CPC Central Committee and the State Council, support the development of individual businesses, and ensure that tax reduction policies are implemented for individual businesses, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement of the Ministry of Finance and the State Administration of Taxation on Preferential Tax Policies for Small and Micro Enterprises and Individual Businesses" (No. 6 of 2023), which extends the personal income tax reduction policy for individual businesses until December 31, 2024.
The final text of the European Union's Carbon Border Adjustment Mechanism (CBAM), also known as the "carbon border tax" bill, was released on May 16th, and CBAM came into effect on the second day after the announcement.
The Central Economic Work Conference has made it clear that in 2023, an active fiscal policy will be implemented with greater force and efficiency.
On March 26, 2023, the State Administration of Taxation issued a notice jointly with the Ministry of Finance, entitled "Announcement on Further Improving the Policy of Pre-tax Additional Deduction for Research and Development Expenses" (Announcement No.7 of 2023 by the Ministry of Finance and the State Administration of Taxation), in order to further encourage enterprises to increase R&D investment and better support technological innovation.
According to the “Announcement on Continuing to Implement Preferential Policies for Disabled Employment Security Fund”, starting from January 1, 2023, until December 31, 2027
On March 26, 2023, the State Taxation Administration issued a tax policy announcement to support the development of small and micro enterprises and individual businesses. According to “Announcement of the Ministry of Finance and the State Administration of Taxation on Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Businesses”
According to the “Notice from the Ministry of Human Resources and Social Security, Ministry of Finance, and State Taxation Administration on Issues Related to the Phased Reduction of Unemployment Insurance and Work Injury Insurance Rates”, starting from May 1, 2023, the policy of continuing to implement the phased reduction of the unemployment insurance rate to 1% will be extended until the end of 2024.
According to the “Announcement on Continuing to Implement Tax Preferential Policies on Urban Land Use Tax for Logistics Enterprises' Bulk Commodity Warehousing Facilities by the Ministry of Finance and the State Administration of Taxation”, from January 1, 2023, to December 31, 2027, logistics enterprises' self-owned (including for their own use and rental) or leased bulk commodity warehousing facilities' land will be subject to a 50% reduction in urban land use tax based on the applicable tax amount standard of the corresponding land level.