Qianhai Extends Preferential Enterprise Income Tax Policy to 2025

The Ministry of Finance and the State Taxation Administration recently issued a circular on extending the preferential enterprise income tax policy for the Shenzhen Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone (Cai Shui No. 30 [2021]). The circular is effective from 1 January 2021 to 31 December 2025. New measures include:

• Eligible enterprises in the Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone can pay enterprise income tax at a preferential rate of 15%.

• For enterprises with headquarters in the Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone, only the revenue of the Qianhai-based headquarters and branches that meet the requirements set out in the circular are entitled to the 15% tax rate.

Source: Shenzhen Qianhai Shenzhen-Hong Kong Modern Services Cooperation Zone Authority