Country for PR: China
Contributor: Xinhua News Agency
Wednesday, November 30 2022 - 21:16
AsiaNet
Guangzhou Nansha Tax Incentives: A Magnet for Hong Kong and Macao Residents and the Encouraged Businesses and Industries
GUANGZHOU, China, Nov. 30, 2022 /Xinhua-AsiaNet/--

Recently, Guangzhou released the Measures of Preferential Individual Income Tax 
Policy in Nansha District of Guangzhou Municipality. The document clarifies the 
implementation details. Under these measures, for Hong Kong and Macao residents 
working in Nansha, the IIT burden exceeding that in the two special 
administrative regions (SARs) will be exempted. 

This tax policy was launched in accordance with the tax system of the Chinese 
mainland to promote the alignment of tax rules between Guangzhou and the two 
SARs. It will help create a favorable business and living environment in Nansha 
where the IIT policies align with those of Hong Kong and Macao and facilitate 
Hong Kong and Macao residents in the establishment of their own businesses or 
simply gaining employment in Nansha. The associated benefits generated in the 
development of the Greater Bay Area will be shared by more Hong Kong and Macao 
residents, according to Nansha District People's Government of Guangzhou City.

Nansha sits at the geometric center of the Guangdong-Hong Kong-Macao Greater 
Bay Area and serves as a vital hub for the area's interconnection. On June 14 
of this year, China's State Council issued an overall plan to promote 
comprehensive cooperation among Guangdong, Hong Kong and Macao by further 
deepening opening-up in Nansha, thus giving Nansha a new positional objective 
and a major mission.

Zhaoke Ophthalmology, a biomedical company founded in Nansha, had only one Hong 
Kong executive based in Nansha before the Plan of Guangzhou Nansha was 
implemented. Given that Hong Kong residents who work in Nansha can now enjoy 
tax rebates in line with the Hong Kong tax system, more overseas executives are 
forecast to be based in Nansha. "As our Hong Kong team boasts advantages in the 
R&D and introduction of biomedical technology, this tax policy will help 
attract more talent with an international vision for our company," said its 
board chairman, Dr. Li Xiaoyi.

This is not the first tax preferential policy after the release of the Plan of 
Guangzhou Nansha. Recently, Guangdong Province officials forwarded the Notice 
of the Ministry of Finance and the State Taxation Administration on 
Preferential Policies on Corporate Income Tax in Guangzhou Nansha for the 
benefit of key businesses and industries, and they advanced their opinions on 
its implementation. This marked the official implementation of the corporate 
income tax (CIT) incentive in Nansha.

Targeting key businesses and industries, this tax preferential policy features 
two highlights. First, in Nansha's launch areas, qualified businesses in the 
encouraged industries may enjoy a reduced corporate income tax rate of 15%. 
Second, starting from January 1, 2022, high-tech companies or small- and 
medium-sized tech firms in Nansha are allowed to extend their carry-over of 
losses for up to 13 years. Such losses refer to those incurred within eight 
years before they become qualified for this policy.

As a Hong Kong-invested company that has been in Nansha for over ten years, 
Zhaoke Ophthalmology is committed to the R&D and manufacture of biomedical 
products. Compared with only 30-odd employees upon its establishment in 2018, 
the company now has a strong workforce of more than 300 people, over half of 
whom are R&D staff.

Regarding this tax incentive, Dr. Li Xiaoyi said that under the guidance of 
these new policies, Chinese businesses will gradually reduce their reliance on 
foreign technologies and focus more on independent technology R&D.

These two tax policies were issued successively. So far, all tax preferences 
under the Master Plan of Guangzhou Nansha have rapidly been refined and 
implemented.

Nansha's tax policies will continue to enhance the willingness of market 
entities to participate in the district's development and boost the confidence 
of Hong Kong and Macao entrepreneurs to develop in Nansha, and encourage 
numerous industries and businesses to compete in the global arena and to build 
Nansha into a portal for high-level opening-up . 

Source: Nansha District People's Government of Guangzhou City

Image Attachments Links:

   Link: http://asianetnews.net/view-attachment?attach-id=435253

   Caption: The Urban landscape of Nansha Bay, Nansha district, Guangzhou

Attachments
Nansha.jpg