The Shenzhen Tax Service and the Authority of Shenzhen-Hong Kong Modern Service Industry Cooperation in Qianhai jointly released on June 5, 2023 the Announcement on Clarifying the Issues concerning the Application of Preferential Corporate Income Tax Policies in the Shenzhen-Hong Kong Modern Service Industry Cooperation in Qianhai ("Qianhai Cooperation Zone"), which took effect on January 1, 2023.
Under the MOF and STA No.30 (2021) document, qualified companies established in the Qianhai Cooperation Zone are eligible for the reduced 15 percent corporate income tax ("CIT") rate. The Announcement further clarified that those resident enterprises that are registered in the Qianhai Cooperation Zone would be considered meeting the criteria of "substantive operation" if they are engaged in the industries that meet the requirements and have their production and operation, personnel, accounting, and property in the Zone, while those resident enterprises that are just registered in the Zone and do not have their production and operation, personnel, accounting or property in the Zone would not be considered meeting the criteria and would not be eligible for the preferential CIT policies.