Sunfly Tech announced on the evening of October 8 that it recently received a notice jointly issued by the Shandong Provincial Department of Science and Technology, the Shandong Provincial Department of Industry and Information Technology, the Shandong Provincial Department of Finance, and the Shandong Provincial Tax Service of the State Taxation Administration, concerning the cancellation of high-tech enterprise qualifications for Yantai Kingsburg Piano and other companies. Its high-tech enterprise qualification numbered GR202137006918 for 2021 to 2023 has been revoked. The announcement stressed that the company's current high-tech enterprise qualification numbered GR202437001943 remains valid, and production and operations are unaffected. Because its income after tax adjustments for 2021 to 2023 was negative, the company is not required to repay corporate income tax, but it must repay tax benefits already enjoyed plus corresponding late fees. These specifically include the 5 percent additional deduction for input value-added tax and related surtaxes, as well as the 50 percent reduction in urban land use tax. The exact amounts remain subject to further clarification by the tax authorities. The company judges that the above tax repayments and late fees do not constitute a prior-period accounting error and do not involve retrospective adjustment of prior financial data. The repaid amounts will be recognized in current profit or loss, and the final accounting treatment and impact on operating results will be based on the audited financial statements.
Sunfly Intelligent Technology Co LtdSunfly Tech's high-tech enterprise qualification for 2021-2023 was revoked, forcing it to repay tax benefits plus late fees.
