June 29 2022

Guangdong Unveils Preferential CIT Policies in Hengqin Zone

Source: Department of finance of Guangdong Province

The Department of Finance of Guangdong Province released on June 1, 2022 the Circular of the Ministry of Finance and the State Taxation Administration on Implementing Preferential Corporate Income Tax Policies in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin ("Hengqin Zone"), with retroactive effect on January 1, 2021.

It is clarified that corporate income tax ("CIT") on qualified industrial enterprises in Hengqin Zone would be levied at a reduced rate of 15%, and the tax can be waived on eligible companies in the tourism, modern service and high-tech sectors in the Zone for their income from new overseas direct investments. It is further specified that, enterprises in the Zone may include their cost of no more than 5 million yuan for purchase of fixed assets or intangible assets (including self-built or self-developed assets) in one-off cost of the current period for tax deduction, and can accelerate the depreciation or amortization of new purchase costing over 5 million yuan.