Preferential tax policies announced in Hengqin

China will implement a preferential tax policy for building a Guangdong-Macao in-depth cooperation zone in Hengqin, an island in Zhuhai of Guangdong province, Vice-Minister of Finance Xu Hongcai said on Thursday.

Specific policies have been employed for corporate income tax, individual income tax, import tax and tariffs in the cooperation zone, according to Xu.

All industries conducive to diversified economic development in Macao are subject to the preferential corporate income tax rate of 15 percent, which is lower than the general level of 25 percent.

In addition, for qualified capital expenditures of enterprises, one-time pre-tax deduction or accelerated depreciation and amortization are allowed in the current period of expenditure; and income from tourism, modern services, high-tech industries and new overseas direct investment in the cooperation zone shall be exempted from the corporate income tax. The policy was introduced at a media conference.

Some short-supplied employees and high-end professionals from China and abroad working in the cooperation zone should enjoy individual income tax exemptions on the part of income that exceeds the 15 percent individual income tax rate. For Macao residents working in the area, the part of their individual income tax burden exceeding that in Macao shall be exempted, he said.

Some products made in the cooperation zone that achieve a certain level of added value should be exempt from import tax, Xu concluded.