Qianhai to Implement Tax Incentive to Designated Industries
The Qianhai special economic zone in Shenzhen recently won the State Council’s approval to implement a 15 percent corporate income tax incentive that offers firm in designated industries. The tax incentive was being developed for the past 21 months and is said to be a significant attraction for businesses in Qianhai which is just adjacent to Nanshan district.
The head of the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen stated that they will soon be releasing a list of industries that will benefit from the new tax incentive. Furthermore 17 of the 22 policies that is being allowed by the Central Government has materialized and the remaining 5 policies are now being processed and will soon be implemented.
Qianhai’s 17 member advisory committee said that there are 5,197 firms have registered in Qianhai accounting a total registered capital of 360 billion yuan. Established in 2012 the committee is being chaired by Hua Jianmin the vice chairman of the Standing Committee of the National People’s Congress and the committee is planning to add six more members which will include Liu Mingkang former chairman of the China Banking regulatory Commission. Also a deeper cooperation with Hong Kong is part of the zone’s target to have more preferential policies which will lure Hong Kong companies and professionals.
Previously the zone failed to attract investments from Hong Kong in their previous land auctions, but is now aiming to sell a third of its land or around 15 lots which is about 2.6 million square meters. Qianhai leaders are planning to construct 4,000 apartments and rent them out at below market prices to Hong Kong firms and professional who decides to relocate to the area.
Qianhai gained that support of the Central Government in 2010 in becoming a pilot zone for developing modern services industries by cooperating with Hong Kong, but the zone’s appeal to Hong Kong companies is not significant to date. Qianhai must not follow suit and request on every policy that other special economic zones has gained since every pilot zone has a different task than others.
Qianhai is a pilot zone created for the cooperation with Hong Kong by learning Hong Kong practices and to merge with the Hong Kong economy as their goal.