The Hengqin New Area in Zhuhai is being developed as a model zone for Guangdong-Macao cooperation. (PHOTO / CHINA DAILY)
The Chinese Ministry of Finance released two documents that enlarge the scope for income tax exemptions for enterprises and professionals in the Guangdong-Macao In-Depth Cooperation Zone in Zhuhai’s Hengqin New Area, Guangdong province.
The overall development plan for the zone, released in 2021, states that eligible enterprises can enjoy a preferential enterprise income tax rate of 15 percent, which is lower than the general level of 25 percent on the Chinese mainland.
High-end professionals can also enjoy a 15-percent income tax rate according to the overall plan
The new policy extends the number of industries included in the tax exemption list from four to nine, with new fields such as traditional Chinese medicine, modern service industry, and modern financial industry.
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High-end professionals can also enjoy a 15-percent income tax rate according to the overall plan. They used to pay the full income tax and then apply for subsidies. The new policy allows them to make tax deductions directly in their annual tax declarations.
The Hengqin authority also developed an online platform that can help Macao residents who work for enterprises in the zone to calculate their tax deductions, and to submit declarations through the internet.
The zone in Hengqin was established with the mission of “advocating Macao’s moderate economic diversification” and is also defined as “a new platform for Macao residents to live and work.”
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