Chen Siqi

vankochensq@163.com

ENTERPRISES based in the Shenzhen Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ) that meet specific qualifications are subject to a reduced corporate income tax rate of 15%, stated Yang Jiangtao, deputy director-general of the Shenzhen Municipal Finance Bureau, during an interview that was livestreamed yesterday.

Yang participated in the “Government-Enterprise Online Interview” program yesterday, shedding light on the specifics of the preferential corporate income tax policy available to firms operating within the HTCZ Shenzhen Park.

The program was hosted by the official web portal of the Shenzhen Municipal Government at https://www.sz.gov.cn/en/.

The advantageous tax policy stems from a circular jointly issued by the Ministry of Finance and the State Administration of Taxation on Jan. 8, 2024. The circular outlines a reduced corporate income tax rate of 15% applicable to qualified enterprises within the designated enclosed areas of the HTCZ Shenzhen Park.

The scope of the preferential tax treatment encompasses four pivotal sectors: information technology, materials science, biological science and technology, as well as the operation of tech service institutions.

To qualify for the tax incentives, companies must meet certain criteria. Specifically, an enterprise’s primary activities must align with the industrial projects specified in the catalog of preferential corporate income tax for the HTCZ Shenzhen Park, with income from these activities constituting more than 60% of the total revenue. Additionally, an enterprise’s management must be physically located in the designated enclosed areas of the HTCZ Shenzhen Park, exercising substantial and comprehensive oversight over an enterprise’s production, operations, personnel, finances, and assets.

The favorable tax policy remains effective from Jan. 1, 2023 to Dec. 31, 2027.

“We encourage everyone to share their valuable opinions and suggestions, and we will promptly address them to ensure that enterprises can fully leverage the benefits of this preferential corporate income tax policy,” Yang said.

He also expressed his hope that through this online interview, citizens will have a deeper understanding of the preferential corporate income tax policy for enterprises in the HTCZ Shenzhen Park.