Guide for enterprises in Hetao to apply for 15 percent tax discount

The income tax of qualified enterprises in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology innovation Cooperation Zone (HTCZ) is levied at a reduced corporate income tax rate of 15%. Please view this article to get the application guide.

Can your company benefit from this preferential policy? What is the effective period and coverage of this new policy?

Hosted by the official web portal of the Shenzhen Municipal Government, Shenzhen Government Online, the "Government-Enterprise Online Interview" invited Yang Jiangtao, member of the Party Leadership Group and deputy director of the Shenzhen Municipal Finance Bureau, to provide professional interpretations on the preferential corporate income tax policy for the HTCZ Shenzhen Park with enterprise representatives April 10.

On January 8, 2024, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice for Preferential Corporate Income Tax Policy for the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (hereinafter referred to as the "Notice") (Cai Shui〔2024〕No. 2). The Notice clarifies that the income tax of qualified enterprises in the specific enclosed areas of the HTCZ Shenzhen Park can be levied at a reduced income tax rate of 15%.

The preferential corporate income tax catalog covers 4 major areas, 12 core technologies, and 33 specific items.

Please refer to the preferential corporate income tax catalog for the HTCZ Shenzhen Park to check more details.

The main business of the enterprise shall belong to the industrial projects specified in the catalog of preferential corporate income tax for the HTCZ Shenzhen Park, and the income from such main business shall account for more than 60% of the total income. The calculation of total income follows the provisions of Article 6 of the Enterprise Income Tax Law of the People's Republic of China.

The enterprise shall have a practical operational record. Practical operational record means that the actual management institution of the enterprise is located in the specific enclosed areas of the HTCZ Shenzhen Park, and conducts substantial and all-round management and control with respect to the production, operations, personnel, finance, and property of the enterprise.

For qualified enterprises with their headquarters based in the specific enclosed areas of the HTCZ Shenzhen Park, the 15% tax rate is applicable only to the income of their headquarters and branches in the specific enclosed areas of the HTCZ Shenzhen Park. For enterprises whose headquarters are outside of the specific enclosed areas of the HTCZ Shenzhen Park, the 15% tax rate is applicable only to the income of the qualified branches set up in the specific enclosed areas of the HTCZ Shenzhen Park. Qualified branches of enterprises in the specific enclosed areas of the HTCZ Shenzhen Park shall apply for tax incentives in accordance with requirements.

Starting from Huanggang Port in the east, following the Shenzhen River in the south, to Xinzhou River in the west, and to Ronghua Road in the north.

The preferential corporate income tax policy for the HTCZ Shenzhen Park is valid from January 1, 2023 to December 31, 2027.

Enterprises can stay updated through the official websites and WeChat accounts of the Shenzhen Municipal Finance Bureau and Shenzhen Tax Service, State Taxation Administration. The Futian tax service and finance bureau will enhance business training and services to ensure that enterprises can enjoy policy benefits timely.

"We hope that everyone can provide valuable opinions and suggestions, and we will promptly follow up to ensure enterprises can benefit from this preferential corporate income tax policy." Yang Jiangtao stated.

He also expressed the hope that through this online interview, citizens can deepen their understanding of the preferential corporate income tax policy for enterprises in the HTCZ Shenzhen Park and fully leverage the policy's attraction to innovative elements, allowing more qualified scientific research institutions and enterprises to fully enjoy these benefits.

Source: Government Services and Data Management Bureau of Shenzhen Municipality, Finance Bureau of Shenzhen Municipality, Shenzhen Government Online, iShenzhen WeChat account, Shenzhen News Network