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Hechi Tax Authorities Link Business, Accounting and Tax Data to Supervise the Nonferrous Metals Industry End to End

Hechi in Guangxi, known as China's hometown of nonferrous metals, saw its nonferrous output reach 41.44 billion yuan in 2025, more than 40 percent of local above-scale industrial output. As miners adopt unmanned smart mining and AI-driven ore sorting, the local tax bureau is following the industry's digital shift by linking production data with accounting records, standardising cost allocation and improving R&D expense collection, forming an end-to-end chain of detection, coaching and prevention. Nandan county tax officials connected more than 20 data points logged by smart mining systems, such as operating hours, energy use and ore output, to corporate cost accounting modules, and guided sorting plants to build a metal-balance verification mechanism covering 12 data items to spot abnormal metal recovery rates. A leading lead-zinc producer also embedded R&D project tax management into its new industry large-model project at the design stage on tax advice.

Industry News中国税务报Source
2026-10-10

Hechi in Guangxi is a well-known nonferrous metals hub, with the industry generating over 41.4 billion yuan last year, more than 40 percent of the city's above-scale industrial output. As local miners adopt unmanned smart mining and AI-driven ore sorting, the tax bureau has moved into the industry's digital transformation, coaching firms on risks in mining, sorting and smelting. Officials from Nandan county visited companies and wired more than 20 data points logged by smart mining systems, including operating hours, power and water consumption and ore output, into cost accounting modules so production and book figures are compared automatically and discrepancies surface quickly. In ore sorting, they had firms set up a dynamic metal-balance check using 12 data items such as ore processed, feed grade, concentrate output and tailings grade. When one plant's metal recovery rate ran below its historical average for a whole quarter, the cause turned out to be process parameters not adjusted to changes in ore properties; fixing that avoided a distorted tax filing. A lead-zinc producer ranked first nationally in output is building an industry large-model project with a 20 million yuan R&D budget, and tax officials stepped in early to suggest embedding R&D tax management into the system, so researchers clock in with a card, material pickups are scanned in real time and an R&D expense ledger can be exported monthly. The approach shifted Hechi's tax work from after-the-fact checks to early reminders: since last year 26 companies went through risk analysis and four were found to have problems in cost allocation or R&D expense accounting, all corrected with guidance.