I'm in the county town, and you say I'm a big shot?

Chapter 633 The Request from the Party Secretary and County Head

Fang Qingye was somewhat surprised, but of course she wouldn't be so unprofessional as to ask for the reason. She simply said on the phone, "Welcome Secretary Lu and County Head Wang to come and guide our work."

Since the Party Secretary and County Head were coming to pay their respects for the New Year, he naturally couldn't go to the Liulin branch anymore. So he instructed Hu Lingling to call the Liulin branch manager to cancel the visit, and also asked Director Ma of the General Office to prepare for welcoming the county leaders' New Year's visit.

Half an hour later, two Audis stopped in front of the Jinghai Bank building, and Fang Qingye and Zhao Wenjun, who was at home, went down to greet them.

"Happy Chinese New Year, President Fang and President Zhao, may you prosper!" Secretary Lu jokingly cupped his hands in greeting to the two men.

"Thank you, and I wish both leaders a happy Chinese New Year."

After shaking hands, Fang Qingye led the two leaders on a tour of various departments, starting with the business hall downstairs and then the offices upstairs.

They said some auspicious words, and also praised the employees for their high spirits and greater progress in the new year. The New Year's greetings ended in less than half an hour.

Fang Qingye then invited the two leaders to his office to rest and have tea.

Normally, after a few more casual words and the New Year's greetings are exchanged, the leader will head to the next unit. But judging from today's situation, there seems to be something else to say.

Sure enough, County Chief Wang said, "President Fang, today Secretary Lu and I came to Jinghai Bank. First, to visit everyone and wish you and all the employees of Jinghai Bank a Happy New Year. Second, I would like to ask when the portion of the value-added tax revenue from the Pudong branch will be transferred to your Jinghai Bank headquarters for payment?"

Oh dear.
It turned out to be the case.

Banks pay taxes mainly in two parts: corporate income tax and value-added tax.

According to relevant national tax policies, companies like banks, whose head offices and branches are not located in the same county (city), should file tax returns with the competent tax authorities in their respective locations separately.
In other words, the head office and branches report separately in different locations without interfering with each other!
However, things are complicated in China. In order to coordinate the interests of all parties, a new clause was added regarding the payment of value-added tax:
With the approval of the national finance and tax authorities or their authorized finance and tax authorities, the head office may submit consolidated tax declarations to the competent tax authority where the head office is located. If the head office and branches of a fixed business are not in the same county (city) but within the same province (autonomous region, municipality), with the approval of the provincial finance and tax authorities, the head office may submit consolidated value-added tax declarations to the competent tax authority where the head office is located. If the business spans multiple provinces, coordination with relevant national departments is required.

Two years ago, in order to keep all the value-added tax of Jinghai Bank in Nanxin, Secretary Lu went to the provincial leaders to coordinate the relationship between relevant departments, so that all the value-added tax of Jinghai Bank's branches would be declared and paid by the headquarters, and naturally paid to the Nanxin Tax Bureau.

Later, Jinghai Bank established a branch in Shanghai. To keep the value-added tax of this branch in Nanxin, it had to go through the national government. Since it had crossed provincial borders, the relevant provincial departments were powerless to do anything about it.

Today, two key county leaders came to Jinghai Bank under the guise of paying New Year's visits, but their real purpose was to discuss this matter with Fang Qingye.

When Fang Qingye heard County Chief Wang ask this question, he spread his hands and said, "I can't help it. I don't know any leaders in the Ministry of Finance or the State Administration of Taxation. Besides, bank income tax is the main source of income, while value-added tax accounts for a relatively small proportion."

"It's small, isn't it? The Pudong branch paid 1.575 million yuan in value-added tax last year, right?" Secretary Lu said with a smile.

This one
Fang Qingye fell silent.

The county investment company is also a shareholder of Jinghai Bank, so every year the bank's financial report is given to them, which naturally ends up on the desk of the county's main leaders.

Jinghai Bank achieved substantial profits last year, with total assets reaching 3500 billion yuan, revenue of 118.6 billion yuan, and net profit of 35.2 billion yuan. In terms of taxes, the bank, including its various branches, paid a total of 10.35 billion yuan in income tax and 3.15 million yuan in value-added tax, half of which came from the Pudong branch!
Income tax is paid according to the principle of territorial jurisdiction, but value-added tax can be negotiated to be paid in the same way!
"President Fang, Jinghai Bank is now the number one taxpayer in Nanxin County," said County Head Wang.

"With only 7 million yuan in tax revenue, it's nothing, and can't compare to BYD," Fang Qingye said modestly.

"No, President Fang, you didn't calculate the more than 200 million yuan in bank profits and dividends," Secretary Lu added.

According to the year-end meeting of the bank president, Fang Qingye decided to give 30% of the net profit to the shareholders, which is about 10.56 billion yuan, of which the urban investment company will account for 20%, or 2.11 million yuan!
These two hundred million yuan went directly into the county's finances!
This one
Fang Qingye fell silent after listening. "President Fang, I heard that you plan to open a branch in Shanghai, Anhui, and Suzhou this year?" County Magistrate Wang asked.

"Yes, we need to gradually expand our business scope," Fang Qingye replied truthfully.

"Look, there are already two branches in Pudong." Secretary Lu immediately interjected, "You'll definitely be opening more branches in other provinces in the future, so President Fang, this issue needs to be resolved as soon as possible! I heard you know a lot of leaders in various ministries and commissions of the country?"

“Nonsense!” Fang Qingye quickly denied. “I’m just a local bank manager, how could I possibly know any ministerial leaders?”

"I'm entrusting this matter to you. County Chief Wang and I know some leaders in the province, but we're completely clueless when it comes to ministries and commissions," Secretary Lu said earnestly.

“Yes, please, please.” County Chief Wang actually clasped his hands in a gesture of respect.

How could we not ask for help? Last year, the local tax revenue of Nanxin County was nearly 4 billion yuan, so an extra 100 million yuan is definitely not a small matter! And it will increase next year as well.

Seeing the two leaders' attitude, Fang Qingye pondered for a moment and said, "How about this, after the Lantern Festival, the leaders of the People's Bank of China will come to Jinghai Bank to investigate the progress of the digital finance pilot project. I will report to the leaders then and see if they can help. To be honest, I really don't know anyone from the State Administration of Taxation and the Ministry of Finance."

"The leaders from the central bank are coming to Jinghai again? Then we must give them a proper welcome," County Head Wang hurriedly said.

“No, we’re not coming to Nanxin this time, we’re only going to Pudong Branch to conduct research, because most of the pilot business is being carried out at Pudong Branch,” Fang Qingye explained.

oh.
Secretary Lu was somewhat disappointed.

It's worth noting that the banking system observation meeting held in Nanxin last year was a great honor for them. When they reported their work to the city and province, the leaders were very interested in the matter and inquired about it. The leadership team of Nanxin County also praised them.

This is a real achievement.

However, since they didn't come this time, he couldn't force them, but he had to make his stance clear.

"Governor Fang, if the leaders from the central bank need our county's cooperation during this research visit, please don't hesitate to ask, and we will do our best to assist you!"

"Thank you. I will report to you if needed."

After the matter was settled, the two leaders left, and Fang Qingye and Zhao Wenjun saw them off downstairs.

Only after seeing the Audi drive away did he return upstairs.

Fang Qingye went upstairs and noticed that Zhao Wenjun kept staring at him.

"What's wrong, Director Zhao? Is there anything dirty on my face?" Fang Qingye joked.

"I was thinking, it's the first time ever that a Party Secretary and County Head have had to beg a bank for help," Zhao Wenjun exclaimed.

(End of this chapter)