Page 440 - 2018 White Paper on the Business Environment in China
P. 440
8 White Paper on the Business Environment in China
Lifted Restrictions · Commercial banks are encouraged to set up
institutions in the FTZ to conduct offshore foreign
In 2015, a Negative List which detailed prohibited or currency activities
restricted industries for foreign investment was released
with the establishment of the three new FTZs, the · Eligible investors from Hong Kong or Macau
following restrictions were lifted accordingly: operating non-financial institutions in the FTZ may now
provide third party payment services.
Service Provision between Hong Kong, Macau
and Guangdong · Eligible institutions registered Hong Kong or Macau
may now set up financial leasing companies in the FTZ.
· Hong Kong and Macau service providers are now
allowed to set up wholly foreign-owned international And on June 16, 2017, China’s State Council released
shipping enterprise within the FTZ an updated Negative list for all 11 FTZs, removing a
number of restrictions on foreign investment. The new
· Hong Kong and Macau service providers are now negative list, which comes into effect on July 10, 2017,
allowed to set up intermediary service institutions for cuts 10 items and 27 special administrative measures
studying abroad at one’s own expenses within the FTZ from the previous negative list released in 2015. The
lifted restrictions on foreign investment apply to a
· Hong Kong/Macau-invested travel agencies number of industries, including mining, manufacturing,
(capped at a number of five, separately) are now allowed transportation, information, commercial service, finance,
to provide overseas group travel services (with the scientific research, and culture.
exception of Taiwan)
Tax Policies
· Hong Kong/Macau investors are now allowed to
provide high-end medical services and launch pilot The Plan states that the tax incentives implemented
schemes to exchange patients among one another in the Shenzhen Qianhai Development Zone and Zhuhai
Hengqin New Area shall not apply to the other parts of
Shipping the Guangdong FTZ.
· Wholly foreign-owned international shipping
management enterprises is now allowed. · In Qianhai and Hengqin, the enterprises that engage
· The limit on the number of shares a foreign entity in encouraged industries are eligible for corporate
may now own in an international shipping enterprise income tax (CIT) at a reduced rate of 15%
is raised: a foreign entity may hold up to 51 percent of
shares in an international shipping agency. · In Qianhai, the government will subsidize the
individual income tax (IIT) paid on wages which exceed
The Guangdong local government will take charge of the 15% of taxable salary income for qualified high-end
approval procedures for foreign-invested enterprises (FIEs) talents or talents in short
engaging in international shipping management business.
· In Hengqin, the portion of IIT paid which is in excess
Further Opening-up of the Financial Services Sector of the Hong Kong/ Macao IIT on such income can be
refunded for Hong Kong and Macao residents
· Enterprises and financial institutions in the FTZ may
now borrow RMB funds from overseas lenders. Spotlight on Guangzhou’s Changing Identity
· Parent company based in Hong Kong or Macau with Traditionally considered a manufacturing base,
a subsidiary in the FTZ may issue RMB-denominated Guangzhou is increasingly being recognized for its
bonds in China. growing amount of domestic consumption. From 2012,
total retail sales in the city increased by 45.7 percent
· Non-banking financial institutions located in the FTZ and reached RMB870.649 billion in 2016. Growth in
may now conduct cross-border RMB settlements. retail sales is largely being fueled by Guangzhou’s
large population and high wages, as well as its efficient
· Eligible foreign financial institutions may now set infrastructure.
up foreign-owned banks within the FTZ; and Qualified
Foreign Financial Institutions may set up banking joint · Guangzhou is a city of 14 million people and the
ventures (JVs) with Chinese enterprises, within the FTZ. nation’s third-largest metropolitan economy.
· Eligible insurance companies and insurance
intermediary institutions that are based in Hong Kong or
Macau can now set up branches in the FTZ.
440
Lifted Restrictions · Commercial banks are encouraged to set up
institutions in the FTZ to conduct offshore foreign
In 2015, a Negative List which detailed prohibited or currency activities
restricted industries for foreign investment was released
with the establishment of the three new FTZs, the · Eligible investors from Hong Kong or Macau
following restrictions were lifted accordingly: operating non-financial institutions in the FTZ may now
provide third party payment services.
Service Provision between Hong Kong, Macau
and Guangdong · Eligible institutions registered Hong Kong or Macau
may now set up financial leasing companies in the FTZ.
· Hong Kong and Macau service providers are now
allowed to set up wholly foreign-owned international And on June 16, 2017, China’s State Council released
shipping enterprise within the FTZ an updated Negative list for all 11 FTZs, removing a
number of restrictions on foreign investment. The new
· Hong Kong and Macau service providers are now negative list, which comes into effect on July 10, 2017,
allowed to set up intermediary service institutions for cuts 10 items and 27 special administrative measures
studying abroad at one’s own expenses within the FTZ from the previous negative list released in 2015. The
lifted restrictions on foreign investment apply to a
· Hong Kong/Macau-invested travel agencies number of industries, including mining, manufacturing,
(capped at a number of five, separately) are now allowed transportation, information, commercial service, finance,
to provide overseas group travel services (with the scientific research, and culture.
exception of Taiwan)
Tax Policies
· Hong Kong/Macau investors are now allowed to
provide high-end medical services and launch pilot The Plan states that the tax incentives implemented
schemes to exchange patients among one another in the Shenzhen Qianhai Development Zone and Zhuhai
Hengqin New Area shall not apply to the other parts of
Shipping the Guangdong FTZ.
· Wholly foreign-owned international shipping
management enterprises is now allowed. · In Qianhai and Hengqin, the enterprises that engage
· The limit on the number of shares a foreign entity in encouraged industries are eligible for corporate
may now own in an international shipping enterprise income tax (CIT) at a reduced rate of 15%
is raised: a foreign entity may hold up to 51 percent of
shares in an international shipping agency. · In Qianhai, the government will subsidize the
individual income tax (IIT) paid on wages which exceed
The Guangdong local government will take charge of the 15% of taxable salary income for qualified high-end
approval procedures for foreign-invested enterprises (FIEs) talents or talents in short
engaging in international shipping management business.
· In Hengqin, the portion of IIT paid which is in excess
Further Opening-up of the Financial Services Sector of the Hong Kong/ Macao IIT on such income can be
refunded for Hong Kong and Macao residents
· Enterprises and financial institutions in the FTZ may
now borrow RMB funds from overseas lenders. Spotlight on Guangzhou’s Changing Identity
· Parent company based in Hong Kong or Macau with Traditionally considered a manufacturing base,
a subsidiary in the FTZ may issue RMB-denominated Guangzhou is increasingly being recognized for its
bonds in China. growing amount of domestic consumption. From 2012,
total retail sales in the city increased by 45.7 percent
· Non-banking financial institutions located in the FTZ and reached RMB870.649 billion in 2016. Growth in
may now conduct cross-border RMB settlements. retail sales is largely being fueled by Guangzhou’s
large population and high wages, as well as its efficient
· Eligible foreign financial institutions may now set infrastructure.
up foreign-owned banks within the FTZ; and Qualified
Foreign Financial Institutions may set up banking joint · Guangzhou is a city of 14 million people and the
ventures (JVs) with Chinese enterprises, within the FTZ. nation’s third-largest metropolitan economy.
· Eligible insurance companies and insurance
intermediary institutions that are based in Hong Kong or
Macau can now set up branches in the FTZ.
440
