The Chinese government released on June 14, 2022 the Overall Plan on Promoting the Comprehensive Cooperation among Guangdong, Hong Kong and Macao by Further Deepening Opening-up in Nansha District of Guangdong Province.
The Plan will be implemented in the whole area of Nansha district, with Nanshawan, Qingsheng hub and Nansha hub in the southern areas of China (Guangdong) Pilot Free Trade Zone serving as the launching areas in the first phase. It proposed to build industrial cooperation bases for sci-tech innovation, implement preferential import tax policies to support sci-tech innovation, and extend the number of years for carry-over of losses in high-tech enterprises or enterprises in key sectors. The corporate income tax would be levied at a reduced rate of 15 percent for enterprises in sectors encouraged, and the catalog of industries for preferential policies would be formulated according to the procedures. Residents from Hong Kong or Macao who are working in Nansha would be exempted from the individual income tax for their portions of income in a tax burden higher than that in Hong Kong or Macao.