Preferential Tax Policies in Nansha
- Preferential CIT Policies
Basis: Notice on Preferential Corporate Income Tax Policies in Nansha, Guangzhou issued by the Ministry of Finance and State Tax Administration of the PRC (Caishui [2022] No.40), which shall be effective from 1 January 2022 to 31 December 2026.
(1)
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Enterprises registered in the initial launch areas (i.e., Nansha Bay, Qingsheng Hub Cluster, Nansha Hub Cluster) of Nansha and engaged in substantial business in encouraged industries shall be subject to a reduced corporate income tax (CIT) rate of 15%.
A qualified enterprise shall meet both of the following conditions:
(a) The enterprise is engaged in encouraged industries listed in the Preferential Corporate Income Tax Catalogue of Nansha, Guangzhou (2022 Edition), and its revenue derived from the encouraged industries accounts for 60% or above of its total revenue; and
(b) The effective management of the enterprise is physically in the initial launch areas of Nansha and exercise substantial and overall management and control on business, personnel, accounting, and properties, etc. of the enterprise.
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(2)
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Extension of tax loss carry-forward period.
From 1 January 2022, if a qualified enterprise has tax losses incurred within 8 preceding years before it being recognized as a high-and-new technology enterprise or a technology based small and medium sized enterprise, it is allowed to carry forward its unutilized tax losses incurred for a period up to 13 years.
A qualified high-and-new technology enterprise or technology based small and medium sized enterprise shall meet both of the following conditions:
(a) It is engaging in key high-and-new technology industries listed in the Preferential Corporate Income Tax Catalogue of Nansha, Guangzhou (2022 Edition), i.e., 35 industries listed in the section of key high-and-new technology industries, which includes the areas of artificial intelligence and integrated circuit, life and health, high-end equipment, energy saving and environmental protection.
(b) Its revenue derived from the key high-and-new technology industries accounts for 60% or above of its total revenue.
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- Preferential IIT Policies
Basis: Notice on Preferential Individual Income Tax Policies in Nansha, Guangzhou issued by the Ministry of Finance and State Tax Administration of the PRC (Caishui [2022] No.29), which shall be effective from 1 January 2022 to 31 December 2026.
(1)
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For Hong Kong and Macao residents working in Nansha, the part of the individual income tax (IIT) burden exceeding the tax burden of Hong Kong and Macao shall be exempted.
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(2)
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The income that is eligible for the individual income tax preferential policy includes comprehensive income derived from Nansha (including wages and salaries, labor remuneration, author’s remuneration, and royalties), business income, and subsidized income for talents recognized by the local government.
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(3)
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Taxpayers can enjoy the above preferential policy when handling the annual individual income tax settlement in Nansha.
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