Dynamics of the In depth Cooperation Zone Hengqin branch line management tax policy, the highlight i

Mondo Finance Updated on 2024-02-23

Separate lines to manage tax policies.

Start a new journey in the construction of the In-depth Cooperation Zone.

The Master Plan for the Development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the "Master Plan") sets out the four strategic positioning and tasks of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.

Four strategic positioning.

A new platform to promote the moderate diversification of Macao's economy.

A new space to facilitate the life and employment of Macao residents.

A new model for enriching the practice of "one country, two systems".

A new highland to promote the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

Four major tasks. Develop new industries that will promote the moderate diversification of Macao's economy.

Build a new home that is convenient for Macao residents to live and work.

Build a new system of integration and high-level opening-up with Macao.

Improve the new system of joint consultation, joint construction, joint management and shared benefits between Guangdong and Macao.

Fiscal and tax incentives to support the upgrade of policies.

* Vigorously support the development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and upgrade the preferential fiscal and tax support policies.

In terms of tax arrangement, in order to accomplish the four major tasks specified in the Overall Plan, eligible industrial enterprises in the In-depth Cooperation Zone will be subject to enterprise income tax at a reduced rate of 15%.

Goods processed in the Co-operation Zone with a value-added value of 30% or more are exempted from import duties when entering the Mainland through the "second tier".

The in-depth cooperation zone implements preferential individual income tax policies, and at the same time, the tax on goods above the "first-line" limit is adjusted to the "first-line", which is tax-free and liberalized according to "self-use and reasonable quantity".

Except for those that are expressly not tax-exempt by laws and regulations, the goods shall enter the in-depth cooperation zone duty-free through the "first-line" within the limits of self-use and reasonable quantities and in accordance with relevant administrative regulations.

The Co-operation Zone will liberalize the "first-line" and control the "second-line" of goods, and expand the scope of entities and goods enjoying tax-free or bonded policies.

It will provide financial subsidies and link them with the in-depth cooperation zone to attract Macao enterprises to settle in and expand employment, increase the output value of the real economy, and support key enterprises.

In the process of formulating tax policies, the relevant state departments attach great importance to and fully absorb opinions, carry out research and research for many times in connection with reality, and fully communicate and negotiate with all walks of life to carry out discussions and exchanges.

The main content of the tax policy.

Cargo Policy: Notice of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation on the Import and Export Tax Policies for Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Cai Guan Shui 2024 No. 1).

Item Policy: Notice of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation on the Tax Policies for Personal Luggage and Mailed Articles in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Cai Guan Shui 2024 No. 2).

VAT and Consumption Tax Refund Policy: Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Scope of Goods Subject to VAT and Consumption Tax Refund in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (CS 2024 No. 1).

Tax Policy Q&A.

How can the tax policy support the in-depth cooperation zone to achieve high standards for the liberalization of goods in the first line and the control of goods in the second line?

The first is to expand the scope of goods enjoying tax exemption or bonded policies, and no longer limit "production-related";

The second is to expand the scope of beneficiaries of import duty-free and bonded policies, from "enterprises" to "enterprises, administrative organs, public institutions, statutory bodies, as well as social organizations and private non-enterprise units";

The third is to expand the scope of goods subject to the tax rebate policy, including "sugar and confectionery", "cereals, grain powder, starch or dairy products; 44 kinds of products such as "pastries and dim sum" are included in the scope of tax refund;

Fourth, to facilitate the efficient flow of goods, goods that have not been refunded from the mainland will no longer be subject to import taxes when entering the mainland, and goods that are subject to export tariffs in the "second line" will be exempted from collection in the "first line";

Fifth, increase the management requirements for key commodities, and strengthen management measures for four types of goods, including tariff quota management, the implementation of first-class relief measures and additional tariff measures on the United States;

Sixth, the retail sales in the zone are taxed, and the import tax is levied according to the regulations for the sale of tax-free or bonded goods and their processed products.

How can the tax policy promote the life and employment of Macao residents and facilitate the entry and exit of people?

The first is the liberalization of the "first-line", which will change from the "first-line" taxation above the quota to the "first-line" tax exemption according to "self-use and reasonable quantity".

the second is that the "second-line" tax exemption quota is adjusted to 8,000 yuan;

The third is to introduce preferential individual income tax policies, and the part exceeding 15% will be exempted.

How can tax policies support the development of new industries that promote the moderate diversification of Macao's economy?

The first is to increase the duty-free policy of processing value-added, and goods with a value-added processing of 30% or more in the In-depth Cooperation Zone will be exempted from import tariffs when entering the mainland through the "second tier".

The second is to introduce preferential policies for enterprise income tax, and qualified industrial enterprises will be levied enterprise income tax at a reduced rate of 15%.

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