Preferential 15% corporate income tax rate offered in Hetao

Hosted by the official web portal of the Shenzhen Municipal Government, Shenzhen Government Online, the “Government-Enterprise Online Interview” invited Yang Jiangtao, member of the Party Leadership Group and deputy director of Shenzhen Municipal Finance Bureau, to provide interpretations on the preferential corporate income tax policy for the HTCZ Shenzhen Park with enterprise representatives April 10.

The scene of "Government-Enterprise Online Interview".

Policy Interpreation

On Jan. 8, 2024, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice for Preferential Corporate Income Tax Policy for the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as the “Notice”) (Cai Shui〔2024〕No. 2). The notice clarifies that the corporate income tax of qualified enterprises in the specific enclosed areas of the HTCZ Shenzhen Park will be lowered to 15%.

The preferential corporate income tax catalog covers four major areas, 12 core technologies, and 33 specific items.

Please refer to the preferential corporate income tax catalog for the HTCZ Shenzhen Park for more details.

Application Requirements

The main business of the enterprise shall belong to the industrial projects specified in the catalog of preferential corporate income tax for the HTCZ Shenzhen Park, and the income from its main business shall account for more than 60% of the total income. The calculation of total income follows the provisions of Article 6 of the Enterprise Income Tax Law of the People’s Republic of China.

The enterprise shall have a practical operational record. Practical operational record means that the actual management institution of the enterprise is located in the specific enclosed areas of the HTCZ Shenzhen Park, and conducts substantial and all-round management and control with respect to the production, operations, personnel, finance, and property of the enterprise.

For qualified enterprises headquartered in the specific enclosed areas of the HTCZ Shenzhen Park, the 15% tax rate is applicable only to the income of their headquarters and branches in the specific enclosed areas of the HTCZ Shenzhen Park. For enterprises with headquarters outside the specific enclosed areas of the HTCZ Shenzhen Park, the 15% tax rate is applicable only to the income of the qualified branches set up in the specific enclosed areas of the HTCZ Shenzhen Park. Qualified branches of enterprises in the specific enclosed areas of the HTCZ Shenzhen Park shall apply for tax incentives in accordance with requirements.

Scope of Implementation

Implemented area: Bordering Huanggang Checkpoint to the east, the Shenzhen River to the south, the Xinzhou River to the west, and Ronghua Road to the north.

Validity Period

The preferential corporate income tax policy for the HTCZ Shenzhen Park is valid from Jan. 1, 2023 to Dec. 31, 2027.

Access to Information

Enterprises can stay updated by following the official websites and WeChat accounts of Shenzhen Municipal Finance Bureau and Shenzhen Tax Service, State Taxation Administration. The Futian tax service and finance bureau will ensure that enterprises can enjoy policy benefits timely.

Yang said that the online interview was aimed at providing a better understanding of the preferential corporate income tax policy for enterprises in the HTCZ Shenzhen Park and allowing more qualified scientific research institutions and enterprises to fully enjoy these benefits.

“We hope that everyone can provide valuable opinions and suggestions, and we will promptly follow up to ensure enterprises can benefit from this preferential corporate income tax policy,” he stated.

Introduction

“Shenzhen Government Online” is operated by the Government Services and Data Management Bureau of Shenzhen Municipality.

This year, in order to implement the significant strategic deployment of the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the pilot demonstration area of socialism with Chinese characteristics, further strengthen policy dissemination and interpretation, actively respond to social concerns, and enhance interaction and communication between the government, enterprises, and the public, Shenzhen Government Online, the official web portal of the Shenzhen Municipal Government, has launched two series of online interviews, "Government-Enterprise Online Interview" and "Government-Public Online Interview."

"Government-Enterprise Online Interview" closely follows the theme of "promoting high-quality development," while "Government-Public Online Interview" focuses on the theme of "creating a high-quality life," providing practical and effective services for both enterprises and the public.