On 14 June 2022, the State Council of the PRC officially released an Overall Plan for Deepening Globally Oriented Comprehensive Co-operation amongst Guangdong, Hong Kong & Macao in Nansha of Guangzhou (hereinafter referred to as the Nansha Plan), which aims to build Nansha into a key strategic platform based on the Greater Bay Area, cooperating with Hong Kong and Macao, and facing the world.

According to the Nasha Plan, the area will be committed to the following five key development directions:

1. Building industrial cooperation bases for sci-tech innovation
2. Cooperation in youth innovation and entrepreneurship
3. High standard opening up
4. Regulatory interface and connectivity
5. Making a model for urban high-quality development.

In addition, the Nansha plan also proposes to formulate and issue a series of preferential tax policies for the area, which include:

1. In the 3 launching areas in the first phase, i.e., Nanshawan, Qingsheng hub and Nansha hub, enterprises in encouraged sectors will be subject to enterprise income tax at a reduced rate of 15%.
2. To further extend the loss carrying forward period for enterprises in key high-tech industries.
3. To support qualified one-stop innovation and entrepreneurship platforms to enjoy preferential tax policies for science and technology business incubators.
4. Hong Kong and Macao residents working in Nansha will be exempted from the part of their individual income tax burden that exceeds the tax burden of Hong Kong and Macao.

The National Development and Reform Commission and other government departments of the PRC are now investigating and formulating the catalogue of industries for preferential enterprise income tax in Nansha. The implementation of relevant preferential tax policies needs to be further clarified by the relevant government departments.

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