Page 5 - THE SOUTH CHINA BUSINESS JOURNAL
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Preferential tax policies for individuals the market access threshold for Macao-invested
financial institutions to set up banking and
The Cooperation Zone also mulls a policy similar insurance institution.
to the individual income tax (IIT) incentives
implemented at the nine Guangdong cities in the In the sci-tech research and high-end
Guangdong-Hong Kong-Macao Greater Bay Area manufacturing industries, the Zone will mainly
(GBA) as well as in the Hainan FTP. focus on developing integrated circuit (IC), big
data, artificial intelligence (AI), Internet of Things
Overseas and domestic high-end talents and (IoT), and biomedicine industries. High standard
shortly needed talents working in the Zone may be industry-academia-research demonstration bases
exempt from paying the portion of income tax that and a technological innovation and transformation
exceeds 15 percent of their taxable income. center are to be built here. To support sci-tech
research, the Zone also considers carrying out
Moreover, for Macao residents working in the CIZ, trials to manage the security of cross-border
they may still be eligible for Macao’s IIT rates. data transmission and achieve cross-border
connectivity of scientific research data.
Other supportive measures
To relax investment restrictions, it will formulate
In addition to the above measures, the special measures to ease market access and adopt
Guangdong-Macao CIZ will explore innovative a “committed market access system.”
cross-border monetary control, achieve the free
inflow and outflow of cross-border capital, and Hengqin island, also known as Hengqin New Area,
promote capital account convertibility. which has about 53,000 residents, has introduced
several supportive measures in recent years that allow
To boost the modern financial service industry, Macao companies to operate on the island or across
the masterplan suggests establishing a financial borders. By the end of June, more than 4,300 Macao
services platform between China and Portuguese- investment companies were registered on the island,
speaking countries, develop cross-border RMB up 20.5 percent from the end of 2020, with registered
settlement, bond market, wealth management capital reaching 135.7 billion yuan ($21 billion),
services, and financial leasing. The Zone will lower according to the local market regulator.
5 AMCHAM SOUTH CHINA SOUTH CHINA BUSINESS JOURNAL 6
Preferential tax policies for individuals the market access threshold for Macao-invested
financial institutions to set up banking and
The Cooperation Zone also mulls a policy similar insurance institution.
to the individual income tax (IIT) incentives
implemented at the nine Guangdong cities in the In the sci-tech research and high-end
Guangdong-Hong Kong-Macao Greater Bay Area manufacturing industries, the Zone will mainly
(GBA) as well as in the Hainan FTP. focus on developing integrated circuit (IC), big
data, artificial intelligence (AI), Internet of Things
Overseas and domestic high-end talents and (IoT), and biomedicine industries. High standard
shortly needed talents working in the Zone may be industry-academia-research demonstration bases
exempt from paying the portion of income tax that and a technological innovation and transformation
exceeds 15 percent of their taxable income. center are to be built here. To support sci-tech
research, the Zone also considers carrying out
Moreover, for Macao residents working in the CIZ, trials to manage the security of cross-border
they may still be eligible for Macao’s IIT rates. data transmission and achieve cross-border
connectivity of scientific research data.
Other supportive measures
To relax investment restrictions, it will formulate
In addition to the above measures, the special measures to ease market access and adopt
Guangdong-Macao CIZ will explore innovative a “committed market access system.”
cross-border monetary control, achieve the free
inflow and outflow of cross-border capital, and Hengqin island, also known as Hengqin New Area,
promote capital account convertibility. which has about 53,000 residents, has introduced
several supportive measures in recent years that allow
To boost the modern financial service industry, Macao companies to operate on the island or across
the masterplan suggests establishing a financial borders. By the end of June, more than 4,300 Macao
services platform between China and Portuguese- investment companies were registered on the island,
speaking countries, develop cross-border RMB up 20.5 percent from the end of 2020, with registered
settlement, bond market, wealth management capital reaching 135.7 billion yuan ($21 billion),
services, and financial leasing. The Zone will lower according to the local market regulator.
5 AMCHAM SOUTH CHINA SOUTH CHINA BUSINESS JOURNAL 6
