“As our company deepens its third-generation semiconductor industry layout, R&D expenses and talent costs continue to grow. The tax authorities guided us to timely enjoy tax incentives such as the additional tax deduction for R&D expense and VAT credit refunds, which had provided critical support for us to overcome technological barriers.” said the finance controller of Heyuan FLCT Communication Technology Co., Ltd. (hereinafter referred to as “FLCT”), reflecting on how tax policies have fueled the company’s high-quality development.
FLCT is a national high-tech enterprise and a leader in radio frequency filter chips for next-gen information technology. The company has achieved multiple breakthroughs in third-generation semiconductors through independent innovation. It pioneered China’s first 8-inch 5G/6G bulk acoustic wave (BAW) filter chip IDM production line, becoming the only one domestically and the third globally enterprise with independent IP rights for 5G BAW filter chips. Its products now cover full frequency bands for global mobile terminals, satellite communications, and other applications, breaking China’s reliance on foreign technologies in 5G RF filter chips.
“Our company’s rapid growth owes much to tax incentives.” the finance controller said. Over the past two years, FLCT has benefited from tax incentives with over 60 million Yuan in deduction for R&D expenses and 60 million Yuan in VAT refunds, making the new driving force for its innovation. Nowadays, it produces over 300 million 5G BAW filter chips annually, serving as a key supplier for domestic and international tech giants.
In recent years, High-tech Development Zone Office, Heyuan Tax Service, State Taxation Administration (hereinafter referred to as “High-tech Development Zone Office”), has prioritized the needs of specialized, innovative enterprises by establishing a “policy profiling - precise delivery - dynamic tracking” closed-loop service mechanism. The mechanism includes forming dedicated tax teams, creating “one enterprise, one policy” service files, and hosting tax-enterprise forums to address challenges. In consideration of chip companies facing long R&D cycles and heavy equipment costs, High-tech Development Zone Office strengthens guidance on the collection of R&D expenses to alleviate its burdens. In 2025, the tax authority launched a “Chinese New Year Corporate Support Initiative” and adopted a “policy drip-irrigation & preemptive service” work mode aligning with Guangdong’s "Stronger Guangdong Chips" strategy.
“Tax incentives empower us to focus on innovation.” said an FLCT executive. The company plans to further invest in R&D and production equipment, scaling up high-end filter chips and modules to strengthen China’s communication industry chain and advance chip technology breakthroughs.
The spokesperson of High-tech Development Zone Office stated that tax authority will refine a full-process service system integrating “policy supply - targeted delivery - impact analysis” and launch a “policy outreach” campaign for tech innovators. By leveraging targeted data analytics and expert teams providing one-on-one assistance, it aims to ensure precise policy delivery, continuously fueling the rise of “China Chip” with tax-driven forces.
