Greater Bay Area Tax Series Articles
Tax Research on Guangdong-Hong Kong-Macau Greater Bay Area Series
Prospect of Hengqin tax incentives after releasing a plan for building a Guangdong-Macau in-depth cooperation zone in Hengqin
9 September 2021
On 5 September 2021, China’s Central Committee of the Communist Party of China and the State Council released a plan for building a Guangdong-Macau in-depth cooperation zone in Hengqin, which is a region located in the Zhuhai, Guangdong Province. The plan aims to encourage further economic development in Hengqin, a more diversified economy in Macau, and a new stage of comprehensive cooperation between Guangdong and Macau.
The plan proposes various preferential tax policies, including enterprise income tax (EIT) and individual income tax (IIT) incentives, as well as the relaxation of import tax and tariffs on goods.
Although detailed guidance of these preferential tax policies is yet to be released, this article discusses Deloitte China’s preliminary observations based on other similar tax incentives that were or are still applicable in Hengqin and neighboring regions.