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China Foreign Investment in China Benefits and Incentives Preferential Tax Policies in Hengqin
KNOWLEDGE|
(1) |
Qualified enterprises registered in the Hengqin Guangdong-Macao In-Depth Cooperation Zone shall be subject to a reduced corporate income tax (CIT) rate of 15%.
A qualified enterprise shall meet both of the following conditions: (a) Engaged in one of the industries listed in the Preferential Corporate Income Tax Catalogue of the Hengqin Guangdong-Macao In-Depth Cooperation Zone (2021 Edition), and its income derived from the main business accounts for 60% or above of its total income. (b) Carry out a substantive operation, which means that the actual management organization of the enterprise is located in the Hengqin Guangdong-Macao In-Depth Cooperation Zone and exercises substantive and comprehensive management and control over the production and operation, personnel, accounting, property, and other aspects of the enterprise.
The Preferential Corporate Income Tax Catalogue of the Hengqin Guangdong-Macao In-Depth Cooperation Zone (2021 Edition) covers the following nine industries: high-tech, medical and health, tourism, scientific and educational research and development, other Macau brand industries, modern services, traditional Chinese medicine, cultural and trade exhibition, and modern finance.
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(2) |
The income derived from new overseas direct investment from enterprises registered in the Hengqin Guangdong-Macao In-Depth Cooperation Zone in the tourism, modern services and the high-tech industry can be exempted from corporate income tax.
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(3) |
For enterprises registered in the Hengqin Guangdong-Macao In-Depth Cooperation Zone, its newly purchased fixed assets (other than houses and buildings) or intangible assets with a unit value of up to RMB5 million can be deducted from the taxable income on a one-off basis. Depreciation and amortization are no longer calculated annually. Enterprises can shorten the depreciation and amortization period for newly purchased fixed or intangible assets with a unit value of over RMB5 million or adopt an accelerated depreciation and amortization method. |
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(1) |
For domestic and overseas high-end or urgently needed talents working in the Hengqin Guangdong-Macao In-Depth Cooperation Zone, the part of the individual income tax burden exceeding 15% shall be exempted.
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For Macao residents working in the Hengqin Guangdong-Macao In-Depth Cooperation Zone, the part of the individual income tax burden exceeding the tax burden of Macao shall be exempted.
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(3) |
The income that is eligible for the individual income tax preferential policies includes comprehensive income derived from the Hengqin Guangdong-Macao In-Depth Cooperation Zone (including wages and salaries, labor remuneration, author’s remuneration, and royalties), business income, and subsidized income for talents recognized by the local government.
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(4) |
Taxpayers can enjoy the above preferential policies when handling the annual individual income tax settlement in the Hengqin Guangdong-Macao In-Depth Cooperation Zone. |
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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