The newly released preferential tax policies have made a lot of innovation in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin possible, and also have benefited the zone's Macao enterprises and residents, said Zhang Huibing, chief accountant of the Cooperation Zone, at a press conference to explain Hengqin's preferential policies for corporate income tax and individual income tax on June 16.

(Photo: provided to Newsgd.com)

For instance, enterprises can seize opportunities to develop those industries listed in the latest corporate income tax preferential catalogue for the Cooperation Zone, such as traditional Chinese medicine, modern service and modern finance.

The listed industries are mostly consistent with Macao's development, and will attract global high-quality enterprises, to promote Macao's adequate economic diversification.

Also, the new policy has a special item to encourage enterprises to go global. A corporate income tax exemption is granted for income obtained from the new overseas direct investment of the tourism, modern service and high-tech enterprises established in the Cooperation Zone.  

According to Zhang, it is also the first time for the government to implement preferential individual income tax policy for Macao residents. Macao residents working in the zone will now have exempted the portion of their individual income tax burden exceeding Macao standards.

In detail, it clarifies the preferential individual income tax is applicable to those Macao residents who work in the Cooperation Zone from which obtain their income. The residents can be permanent residents and non-permanent residents, that is in accordance with the Basic Law of the Macao SAR.

It also grants Macao residents the similar tax calculation in Macao. The income includes salaries, service income, author's remuneration, royalties, business income, and subsidies for talents recognized by the local government.

More beneficial policies will be launched for Macao's development

(Photo / Nanfang Daily)

Apart from the new coming corporate income tax incentive, there are also a large number of preferential policies being implemented in the zone, including rent subsidies for enterprises, subsidies for research and development expenses, awards for special talents, said Su Kun, deputy director of the Executive Committee of the Cooperation Zone.

To boost scientific innovation and industrial development of the Cooperation Zone, it will launch beneficial policies for Macao and a number of industrial policies covering medicine and health, integrated circuits, real economy in the near future.

The beneficial policies will help Macao investors to develop better in the Cooperation Zone, with more support in terms of office renting, property management fee subsidies, revenue incentives and loan interest discounts.

Policies will also be issued to encourage Macao residents to work in the zone. For instance, employment awards will be given to Macao youth according to their different academic qualifications such as doctorate and master's degree. Employment incentives and social security expenditure subsidies will be granted for those enterprises that recruit Macao residents.

Author: Will

Editor: Wing, Nan, Jerry