Macao citizens, business environment vitalized by eased Hengqin tax policies
Tax rebates, fee cuts, and deferrals totaling 1.8 billion yuan ($267 million) through late June have eased burdens for taxpayers and enterprises while invigorating the business environment of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
In addition to phased and institutional tax policies, the Cooperation Zone also implemented preferential corporate and individual income tax policies for qualified enterprises engaged in designated industries, domestic and overseas talents, and for Macao citizens working in Hengqin.
The support policies and benefits provided Macao companies and citizens in Hengqin with a taxation environment similar to that of the Special Administrative Region. Tax burdens for Macao residents in the Cooperation Zone have been reduced by 70 percent, while the amount of tax reduction and exemption for enterprises has doubled year-on-year since implementation of preferential corporate income tax policies.
Hengqin Financial Island [Photo courtesy WeChat account: hengqinzaixian2021]
Hengqin is now home to 4,800 Macao-funded enterprises, and their total tax revenue increased by 12 percent in the first half of the year, signifying positive effects in "attracting new Macao enterprises and expanding new investment from Macao."
The preferential tax policies also played a significant role in helping enterprises resume development and keep operations stable, while enhancing the willingness and confidence of market entities to participate in developing the Cooperation Zone.
During the January-June period, more than 400 new tax units were added in Hengqin each month, and the number of Value Added Tax invoicing payers went up by 3.59 percent year-on-year. Local Social Security income also rose by 30 percent year-on-year, as more domestic and overseas high-quality enterprises settled in Hengqin and created jobs.
Since April, small and micro enterprises in Hengqin have accounted for 96.3 percent in number of households and 79.8 percent in amount of refunds. Meanwhile, the infrastructure and key industries like pharmaceutical and electronic equipment manufacturing, transportation, power generation, software and technical services, and accommodation are major beneficiaries of large-scale VAT rebate measures.
The tax relief policies help enterprises pull through tough times with the risks of resurgent COVID-19 and normalized epidemic prevention and control measures, noted Su Zhigang, chairman of Chimelong Group. Chimelong International Ocean Resort in Hengqin received VAT rebates of 244 million yuan ($36 million) in 2022 and enjoyed various tax reductions, exemptions, and fee cuts of more than 900 million yuan ($133 million) in the past three years.
The Hengqin Tax Bureau will continue to streamline tax handling; help stabilize growth, ensure employment, and benefit livelihoods; as well as improve tax services and taxpayer satisfaction, said a responsible person.