Qianhai CIT Preferential Policy Extended
Recently, the Ministry of Finance and the State Administration of Taxation of the PRC issued a Circular on Extending the Preferential Corporate Income Tax Policy for Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone (CaishuiNo.30), which clarified that the corporate income tax (CIT) preferential policy for Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone will be extended to 31 December 2025.
Previously, according to the Circular of Ministry of Finance and State Administration of Taxation of the PRC on the Corporate Income Tax Preferential Policies and Preferential Catalogues for Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Zone, Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone (CaishuiNo.26), the CIT preferential policies for Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone should expire after 31 December 2020.
According to CaishuiNo.30, the changes of the CIT preferential policy for Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone mainly include:
Enterprises that may enjoy 15% preferential CIT shall mainly engage in the business sectors specified in the Preferential Catalogue for Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone (2021 Edition) (hereinafter referred to as the Catalogue), and their main business income shall account for more than 60% of their gross revenue. The previous proportion required is 70%.
The Catalogue adds one more business sector, i.e., commercial service sector, to the previous four sectors, namely modern logistics sector, information service sector, science and technology service sector, culture and creative sector. The commercial service sector includes:
(1) management consulting, urban planning, engineering management, energy conservation, environmental protection, and other professional services
(2) legal services
(3) accounting, taxation and asset appraisal services
(4) credit investigation and rating, credit investigation and other credit services
(5) international conferences, brand exhibitions, professional exhibitions and related services
(6) human resources and human capital services and other professional services
(7) intellectual property agency, transfer, registration, identification, retrieval, analysis, evaluation, operation, certification consulting and other services
(8) international cruise operation and management services
The above CIT preferential policy is applicable only to revenue of the enterprises and branch offices in Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone.
The above CIT preferential policy shall be implemented from 1 January 2021 to 31 December 2025.
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