Page 122 - 2019 Special Report on the State of Business in South China
P. 122
Fig 14 Gaming and tourism industry grew sharply since the end of monopoly in 2002
Source: Wind
Special Economic Zones
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
340 billion yuan (US$51.6 billion) in total investment.
With professional zone management, as well as the most
preferential investment policies in South China, Hengqin
New Area offers appealing incentives to investors.
In March 2014, China issued a “Preferential Corporate
Income Tax Catalog” for Hengqin New Area, which
identified five industries and 72 business categories,
such as ocean-sourced pharmaceuticals and health
care, for preferential tax treatment. While China’s
standard rate of corporate income tax is 25%, eligible
enterprises listed in the Catalog will be taxed at a
reduced 15 percent rate closer to corporate income tax
levels in Hong Kong and Macao.
122
Source: Wind
Special Economic Zones
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
340 billion yuan (US$51.6 billion) in total investment.
With professional zone management, as well as the most
preferential investment policies in South China, Hengqin
New Area offers appealing incentives to investors.
In March 2014, China issued a “Preferential Corporate
Income Tax Catalog” for Hengqin New Area, which
identified five industries and 72 business categories,
such as ocean-sourced pharmaceuticals and health
care, for preferential tax treatment. While China’s
standard rate of corporate income tax is 25%, eligible
enterprises listed in the Catalog will be taxed at a
reduced 15 percent rate closer to corporate income tax
levels in Hong Kong and Macao.
122
