GUANGZHOU, China, November 30, 2022 /PRNewswire/ — Recently, Canton released the Measures of Personal Income Preferential Tax Policy in Nansha District of Guangzhou Municipality. The document clarifies the implementation details. As part of these measures, hong kong and Macau residents working in Nansha, the burden of IIT exceeding that of the two special administrative regions (SAR) will be exempted.
This tax policy was launched in accordance with the tax system of mainland China to promote the alignment of tax rules between Canton and the two SARs. It will help create a conducive business and living environment in Nansha, where IIT’s policies will align with those of hong kong and Macau and facilitate hong kong and Macau residents to start their own business or simply find a job in Nansha. The associated benefits generated in the development of the Greater Bay Area will be shared by more hong kong and Macau residents, according to Nansha District People’s Government Canton Town.
Nansha is at the geometric center of the Guangdong-Hong Kong-Macao Greater Bay Area and serves as a vital hub for interconnecting the region. On June 14 of this year, China The Council of State issued a comprehensive plan to promote comprehensive cooperation between Guangdong, hong kong and Macau by further deepening the opening up of Nansha, thus giving Nansha a new positioning objective and a major mission.
Zhaoke Ophthalmology, a biomedical company founded in Nansha, had only one hong kong executive based in Nansha before the implementation of the Guangzhou Nansha plan. Given that hong kong Residents who work in Nansha can now benefit from tax relief in accordance with the hong kong tax system, more foreign executives should be based in Nansha. “Like our hong kong enjoys advantages in R&D and the introduction of biomedical technology, this tax policy will help attract more talents with an international vision for our company,” said its Chairman of the Board, Dr. Li Xiaoyi.
This is not the first preferential tax policy after the release of the Guangzhou Nansha plan. Recently, Guangdong Province the officials conveyed the notice of the Ministry of Finance and the State Tax Administration on the preferential corporate tax policies in Guangzhou Nansha for the benefit of major enterprises and industries, and they expressed their their views on its implementation. This marked the official implementation of the corporate income tax (IRS) incentive in Nansha.
Targeting key businesses and industries, this preferential tax policy has two strengths. First, in the Nansha Launch Zones, qualified enterprises in the encouraged sectors can benefit from a reduced corporate tax rate of 15%. Second, from January 1, 2022, high-tech enterprises or small and medium technology enterprises in Nansha are allowed to extend their loss carryforward for up to 13 years. These losses refer to those incurred in the eight years before they became eligible for this policy.
Like a hong kong-An invested company which has been in Nansha for more than ten years, Zhaoke Ophthalmology is engaged in the R&D and manufacturing of biomedical products. While it had only about 30 employees when it was created in 2018, the company now has a strong workforce of more than 300 people, more than half of whom are R&D personnel.
Regarding this tax incentive, Dr. Li Xiaoyi said that under the guidance of these new policies, Chinese enterprises will gradually reduce their reliance on foreign technology and focus more on independent technology R&D.
These two fiscal policies were issued successively. So far, all tax preferences provided for in Guangzhou Nansha’s master plan have been quickly refined and implemented.
Nansha’s tax policies will continue to strengthen the willingness of market entities to participate in the development of the district and build the confidence of hong kong and Macau entrepreneurs to grow in Nansha and encourage many industries and enterprises to compete on the world stage and make Nansha a high-level gateway.
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Caption: The cityscape of Nansha Bay, Nansha District, Canton
SOURCE Nansha District People’s Government Canton Town