On April 18th, the Qianhai Administration Bureau in Shenzhen announced significant tax reforms. Hong Kong residents working in Qianhai will now be exempt from paying personal income tax that exceeds Hong Kong's tax burden. Additionally, the preferential 15% corporate tax rate in Qianhai is now extended to cover the entire Qianhai Cooperation Zone.
This move is a crucial step in attracting Hong Kong talent and capital to Qianhai, a special economic zone known for its deep integration with Hong Kong. The goal is to bolster the zone's economic growth and establish it as a leading hub for deep integration between Shenzhen and Hong Kong.
Over the past 14 years, Qianhai has been a pioneer in institutional innovation and regulatory alignment with Hong Kong. It has introduced over 200 policies to benefit Hong Kong, attracting US$33.66 billion in Hong Kong capital and nearly 10,000 Hong Kong-funded enterprises.
The new tax policies, outlined in recent notifications by the Ministry of Finance and the State Administration of Taxation, offer clarity on the eligibility and scope of tax incentives. The individual tax policy specifically addresses the timing and scope of tax relief for Hong Kong residents, while the corporate tax policy extends the 15% tax rate to the entire cooperation zone.
This not only eliminates policy disparities within Qianhai but also injects fresh momentum into newly expanded areas. It is expected to bring significant benefits to enterprises, particularly Hong Kong-funded ones, by expanding their development space and enhancing industrial growth. The tax reforms are anticipated to unleash the zone's "scale effect" and "multiplier effect," driving Qianhai towards a new phase of rapid development.
In a nutshell, the expanded tax incentives in Qianhai represent a significant step towards attracting Hong Kong talent and capital, promoting economic growth, and furthering the deep integration between Shenzhen and Hong Kong.
Reporter | Cai Minling, Zhang Wei
Editor | Monica, Will, Holly, James
