China will implement a preferential fiscal policy to build an in-depth cooperation zone by Guangdong-Macao in Hengqin, an island in Zhuhai of the Zhuhai province of Guangdong, Vice-Minister of Finance Xu Hongcai said on Thursday.
Specific policies have been used for corporate income tax, individual income tax, import tax and rates in the cooperation zone, according to XU.
All the industries favorable for diversified economic development in Macao are subject to preferential corporate income 15 percent tax rate, which is lower than the general level of 25 percent.
In addition, for the expenses of qualified capital of companies, the deduction of unique taxes or accelerated depreciation and amortization in the current period of expenses are allowed; and the income of tourism, modern services, high-tech industries and new direct investment abroad in the cooperation zone must be exempt from the income tax of companies. The policy was introduced at a media conference.
Some high-end short and high-end professionals from China and abroad working in the cooperation area should enjoy tax exemptions on individual income by the income that exceed 15 percentage of Individual income tax rate. For Macau residents who work in the area, the share of their tax on the individual income tax that exceeds that in Macau will be exempt, he said.
Some products made in the area of cooperation that achieve a certain level of added value should be exempt from the import tax, XU concluded.
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