Value Added Tax, or VAT, reforms in May 2016 helped GZL, a travel agency, which is based in Guangzhou, Guangdong province in southern China, increase its foreign footprint.
The company saved 3.65 million yuan ($535,700) in VAT payments, which allowed it to plough money back into the business.
"Our overseas market in the first four months in 2017 jumped by around 30 percent year-on-year because of the cash we saved in VAT," Li Bin, finance manager at GZL said, without disclosing further financial details.
Li felt the rebate policy had been crucial in boosting growth and expanding the company's presence as it seeks new destinations.
"Because of the VAT rebate, we have focused more on developing our overseas travel business by introducing 268 new package deals for customers," Li said.
Key industries in the service sector, such as travel, engineering and technology, receive VAT exemptions for overseas parts of their businesses under new tax policies rolled out in May 2016.
The move came amid a major overhaul of China's VAT system.
"VAT reform can give impetus to economic growth and help transform the economy by reducing the tax burden on enterprises," Premier Li Keqiang said.
Streamlining VAT payments was another key area and part of last year's policy as rates were readjusted in the construction, real estate, financial and consumer services sectors.
Tax reforms were first launched in 2013 and involved various industries, including railways, postal services and telecommunications. Tax breaks, such as a reduction in VAT, have been an added incentive. (Source: China Daily)
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