November 28 2022

Hengqin Unveils Tax Policies to Support Development of Metaverse Industry

The Finance Bureau, Taxation Bureau and Economic Development Bureau of Guangdong-Macao In-depth Cooperation Zone in Hengqin ("Hengqin Cooperation Zone") have jointly released the Circular on Issuing the Tax Measures in Ten Aspects to Support the Development of the Metaverse Industry, in a bid to provide full-cycle support for the development of metaverse enterprises with 23 tax policies and service measures in ten aspects.

It is stated that enterprises in industries related to the development of metaverse, such as 5G, artificial intelligence, blockchain, XR and others, may apply for the access to the preferential tax by comparing their industries with the catalogue of 150 items in nine industries eligible for preferential corporate income tax rate of 15 percent for enterprises in the Hengqin Cooperation Zone, and those enterprises falling under the catalogue may declare for exemption of the corporate income tax for the income from overseas direct investment. It is also clarified that those high-tech metaverse enterprises which the country needs to particularly support would be eligible for a reduced tax rate of 15 percent in payment of corporate income tax.