Page 470 - 2018 White Paper on the Business Environment in China
P. 470
8 White Paper on the Business Environment in China
Melco. STDM’s gaming subsidiary, SJM, and Galaxy are preferential investment policies in South China, Hengqin
listed on the Hong Kong Stock Exchange, as are two New Area offers appealing incentives to investors.
other license holders, Wynn Macao and Las Vegas Sands’
Macao operations. In March 2014, China issued a “Preferential Corporate
Income Tax Catalog” for Hengqin New Area, which
Having surpassed Las Vegas in gambling revenue, identified five industries and 72 business categories,
the city is now looking to broaden its economic base such as ocean-sourced pharmaceuticals and health care,
by keeping tourists in town for longer periods of time. for preferential tax treatment. While China’s standard
While casino earnings constitute nearly half of Macao’s rate of corporate income tax is 25 percent, eligible
earnings, in Las Vegas they make up only about 25 enterprises listed in the Catalog will be taxed at a
percent of tourist-related revenue, suggesting that reduced 15 percent rate closer to corporate income tax
tourists in Macao tend to stay for only a day or two, levels in Hong Kong and Macao.
gambling and quickly leaving. The region is hoping to
change that by cashing in on the lucrative convention Infrastructure
trade with new exhibition centers and significant growth
in the number of hotel rooms available. Air
The first exhibition to take advantage of the added Macao is accessible by air from most major cities
space was Mega Macao, the first-ever trade exhibition in Asia plus a number of domestic destinations. All
of its kind in the SAR. Running between the two phases passengers using the modern Macao International
of the Canton Fair in Guangzhou, the event was held in Airport are subject to an airport tax and passenger tax.
the Venetian Convention and Exhibition Center (part of
the Venetian Macao mega resort complex and featuring Road
100,000 square meters of conference and exhibition
space, 70,000 square meters of which is dedicated to Macao consists of a peninsula and the two islands of
exhibitions and can accommodate up to 5,000 booths at Taipa and Coloane. Three bridges, the Nobre de Carvalho
a time). Bridge, Friendship Bridge (Ponte da Amizade) and Sai
Van Bridge, link the peninsula to Taipa. In addition, the
Macao’s CEPA with Mainland China was signed on two islands are linked by the six-lane 2.2 kilometer Taipa-
October 17, 2003 and came into effect on January 1, Coloane Causeway. Construction of the Hong-Kong-
2004. The agreement offers Macao-made products Zhuhai-Macao Bridge began at the end of 2009 and is
tariff-free access to the mainland. According to official scheduled for operation by end of 2017.
statistics issued by Macao Economic Services, the
total product export value under CEPA reached MOP Ports and Waterways
830,878,821 from January 2004 to the end of September
2017. With respect to trade in services, Macao Economic Macao Port includes an outer harbor for passenger
Services has approved 628 “Macao Service Supplier” vessels to/from Hong Kong, as well as an inner port for
certificates, for companies. cargo. The Ka-Ho Harbor includes a fuel oil terminal and
company-exclusive piers. There are regular ferries and
Spotlight on Hengqin Island helicopters providing 24-hour service to Hong Kong.
Ferries also connect with the Shekou Port in Shenzhen.
Hengqin New Area, located in the Zhuhai Special
Economic Zone and part of the Guangdong Free Trade
Zone, is only a stone’s throw away from Macao. As part
of the One Country, Two Systems policy, the central
government is trying to integrate the economies of
Hong Kong, Macao and Mainland China. Hengqin is
directly across the water from Macao, and as such is a
pilot zone for integration. It has already attracted over
RMB340 billion (US$51.6 billion) in total investment.
With professional zone management, as well as the most
470
Melco. STDM’s gaming subsidiary, SJM, and Galaxy are preferential investment policies in South China, Hengqin
listed on the Hong Kong Stock Exchange, as are two New Area offers appealing incentives to investors.
other license holders, Wynn Macao and Las Vegas Sands’
Macao operations. In March 2014, China issued a “Preferential Corporate
Income Tax Catalog” for Hengqin New Area, which
Having surpassed Las Vegas in gambling revenue, identified five industries and 72 business categories,
the city is now looking to broaden its economic base such as ocean-sourced pharmaceuticals and health care,
by keeping tourists in town for longer periods of time. for preferential tax treatment. While China’s standard
While casino earnings constitute nearly half of Macao’s rate of corporate income tax is 25 percent, eligible
earnings, in Las Vegas they make up only about 25 enterprises listed in the Catalog will be taxed at a
percent of tourist-related revenue, suggesting that reduced 15 percent rate closer to corporate income tax
tourists in Macao tend to stay for only a day or two, levels in Hong Kong and Macao.
gambling and quickly leaving. The region is hoping to
change that by cashing in on the lucrative convention Infrastructure
trade with new exhibition centers and significant growth
in the number of hotel rooms available. Air
The first exhibition to take advantage of the added Macao is accessible by air from most major cities
space was Mega Macao, the first-ever trade exhibition in Asia plus a number of domestic destinations. All
of its kind in the SAR. Running between the two phases passengers using the modern Macao International
of the Canton Fair in Guangzhou, the event was held in Airport are subject to an airport tax and passenger tax.
the Venetian Convention and Exhibition Center (part of
the Venetian Macao mega resort complex and featuring Road
100,000 square meters of conference and exhibition
space, 70,000 square meters of which is dedicated to Macao consists of a peninsula and the two islands of
exhibitions and can accommodate up to 5,000 booths at Taipa and Coloane. Three bridges, the Nobre de Carvalho
a time). Bridge, Friendship Bridge (Ponte da Amizade) and Sai
Van Bridge, link the peninsula to Taipa. In addition, the
Macao’s CEPA with Mainland China was signed on two islands are linked by the six-lane 2.2 kilometer Taipa-
October 17, 2003 and came into effect on January 1, Coloane Causeway. Construction of the Hong-Kong-
2004. The agreement offers Macao-made products Zhuhai-Macao Bridge began at the end of 2009 and is
tariff-free access to the mainland. According to official scheduled for operation by end of 2017.
statistics issued by Macao Economic Services, the
total product export value under CEPA reached MOP Ports and Waterways
830,878,821 from January 2004 to the end of September
2017. With respect to trade in services, Macao Economic Macao Port includes an outer harbor for passenger
Services has approved 628 “Macao Service Supplier” vessels to/from Hong Kong, as well as an inner port for
certificates, for companies. cargo. The Ka-Ho Harbor includes a fuel oil terminal and
company-exclusive piers. There are regular ferries and
Spotlight on Hengqin Island helicopters providing 24-hour service to Hong Kong.
Ferries also connect with the Shekou Port in Shenzhen.
Hengqin New Area, located in the Zhuhai Special
Economic Zone and part of the Guangdong Free Trade
Zone, is only a stone’s throw away from Macao. As part
of the One Country, Two Systems policy, the central
government is trying to integrate the economies of
Hong Kong, Macao and Mainland China. Hengqin is
directly across the water from Macao, and as such is a
pilot zone for integration. It has already attracted over
RMB340 billion (US$51.6 billion) in total investment.
With professional zone management, as well as the most
470
