Research On The Financial Effect Of Reducing Taxes And Expenses On Z Manufacturing Company

Reducing taxes and fees is an important measure for China to deepen supply side structural reform,which helps to reduce corporate tax burden,optimize business environment,and stimulate market vitality.It is an important measure to promote high-quality development of the Chinese economy.During the 2023 National People’s Congress and the Chinese People’s Political Consultative Conference,the topic of the manufacturing industry transitioning from "big" to "strong" has attracted widespread attention.As the foundation of the real economy,the manufacturing industry is the lifeline of the national economy.According to tax data,since 2018,the country has cumulatively added over 3.5 trillion yuan in tax reduction and fee deferment,making it the largest industry in terms of tax reduction and fee deferment.Z Manufacturing Company is a private enterprise specializing in the production and manufacturing of polyethylene plastic films in Dongguan.It is a national high-tech enterprise that integrates research and development,production,and sales.The various problems that the company is currently facing urgently require improving its management methods and adapting to existing policies to expand its existing production capacity.Therefore,this paper takes Company Z as a case to explore the financial effects of tax and fee reduction on the company.It has two meanings:first,it explores the impact of tax and fee reduction policies on micro enterprises,which helps to supplement the lack of research at the microeconomic level.The second is to propose relevant countermeasures for Z Company to adapt to policy development,which has practical reference significance for manufacturing enterprises to fully utilize the dividends of national policy reform to transform into company benefits.Based on the research and development investment and profitability of the company,it is concluded that the tax and fee reduction policy has no significant financial effect on Z Manufacturing Company.The reason for this problem is the weak awareness of tax planning in the company;The profit margin of the company’s existing products is low;There is still room for improvement in the company’s R&D investment;The company has not fully implemented the tax and fee reduction policies of the country,province,and city,and based on this,proposes countermeasures for Z company’s further development: firstly,strengthen tax planning and establish an internal control system for the enterprise;The second is to reduce the impact of upstream and downstream enterprises on company costs through multiple channels;Thirdly,continue to increase enterprise research and development investment;The fourth is to actively strive for and implement tax preferential policies.