Around the Xuhui riverside, a five-minute tax service circle for AI firms has taken shape thanks to a tax source management office next to the "Mosu Space" AI community. In Jing'an, a multinational pharmaceutical company with nearly 7,000 employees has a dedicated personal income tax expert team, and in Baoshan's robot industrial park, smart manufacturing and integrated circuit firms have turned tax services into fuel for R&D. Since Shanghai issued its 14th five-year plan for advanced manufacturing in 2021, the economic effects of its three leading industries -- integrated circuits, biomedicine and AI -- have kept emerging.
In 2023, strategic emerging industries accounted for 43.9% of Shanghai's above-scale industrial output, with the three leading industries reaching 1.6 trillion yuan in scale. The tax authority has focused on taxpayer needs and refined its policies to help these industries.
In September 2023, Mosu Space, the country's first and Shanghai's only large-model innovation community, opened in Xuhui. More than 60 large-model companies and over 200 upstream and downstream basic and application-layer firms have gathered there; by February 2024, 15 firms in Xuhui had completed large-model registration, half of the city's total. Its operator said the space works with municipal and district departments to provide market, tax and legal services, including a five-minute tax service circle, a judicial service contact point and a district procuratorate service platform to protect data rights, intellectual property and trade secrets. A recent policy lecture co-hosted by the district science commission, tax bureau and human resources bureau gave bundled guidance on high-tech enterprise recognition, R&D expense super-deduction and training subsidies. Wu Wen Xinqiong, among the first tenants, expects a 5.5 million yuan R&D super-deduction for 2023 and has released its Infinity-AI large-model development platform.
Shanghai has long been a top destination for foreign investment, and the tax authority works to keep its service "magnetism." Sanofi, a leading innovative healthcare company, opened its China office in 1982 and has introduced more than 60 innovative drugs and vaccines over 42 years; China is its second-largest market. As its China headcount neared 7,000, including foreign and senior talent, the tax authority formed a personal income tax expert team offering policy lectures and on-site coaching on expatriate allowances and equity incentives. In 2023 Sanofi won approval for 12 innovative products and indications in China.
Robots, described as the jewel atop manufacturing's crown, integrate AI, advanced manufacturing and new materials. The Shanghai Robot Industrial Park in Baoshan was recognized in 2023 by the Ministry of Industry and Information Technology as one of the first national small and medium enterprise specialty industrial clusters, and now hosts nearly 300 robotics companies. To free up capital, the tax authority refined a "one firm, one policy" service offering tax policy packages and customized packages to park firms. Feimian Instruments grew from a three-person team into an industry benchmark; since 2022 it has enjoyed nearly 54 million yuan in R&D super-deduction. Shanghai Yibu Semiconductor, founded in 2020, received more than 29 million yuan in VAT credit refunds in 2023, with another 14 million yuan applied for in early 2024 about to arrive. Shanghai-Fanuc Robot, a joint venture of Shanghai Electric and Japan's Fanuc, has enjoyed nearly 49 million yuan in VAT deductions since the second half of 2023, which it plans to put toward a third-phase project to expand its R&D center.