27 May 2021
On 27 May 2021, the Ministry of Finance and the State Taxation Administration issued the “Notice on Extending the Preferential Corporate Income Tax Treatment for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone”. According to the “Notice”, qualified enterprises located in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be offered a reduced corporate income tax rate of 15%. For enterprises whose headquarters are located in the Qianhai Cooperation Zone, the 15% tax rate applies only to the income of eligible headquarters and branches in the cooperation zone; for enterprises whose headquarters are located outside the cooperation zone, the 15% tax rate applies only to the income of eligible branches in the cooperation zone. An enterprise is allowed to enjoy the preferential treatment where its main business falls within the “Catalogue for Corporate Income Tax Preferential Treatment in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (2021 Edition)”, and the revenue from the main business shall account for more than 60% of the total revenue. The Notice is valid from 1 January 2021 through 31 December 2025.