Smart services and aligned tax policies to attract international enterprises to the GBA
- The Nansha Plan offers companies a lower corporate tax rate of 15 per cent and an extension of the tax loss carry-forward period, with one-on-one services for enterprises planning to settle in the area, write Huang Xinying, Zeng Meiling and Yue Ruixuan
[The content of this article has been produced by our advertising partner.]
The Guangdong-Hong Kong-Macau Greater Bay Area (GBA) is one of the most open, economically vibrant and populous regions in China. Five years ago, the Outline Development Plan for the Guangdong-Hong Kong-Macau Greater Bay Area was released, and Guangzhou was designated as a core engine for regional development.
To align with international business rules, tax authorities in Guangzhou focused on the main task of being based in the GBA, coordinating with Hong Kong and Macau, and connecting with the world. They have seized the strategic opportunities presented by the “Master Plan of Guangzhou Nansha on Deepening Comprehensive Cooperation between Guangdong, Hong Kong and Macau with a Global Perspective” (or the Nansha Plan) to make breakthroughs in areas such as aligning with tax regulations in Hong Kong and Macau, releasing the dividends of tax incentives, easing the unified processing of tax matters, promoting cross-border cooperation on tax governance, and gathering professional financial and tax services.
These efforts aim to create a tax and business environment beneficial to comprehensive cooperation, adapt to a high-level opening-up effort and satisfy the needs of market entities, thus opening a new chapter of tax services for the high-quality development of the GBA.
Building a tax incentive bridge
Considering the significant differences in tax systems, legal frameworks and taxation methods in the GBA, a better alignment of the former can facilitate the free flow of capital, goods, services and talent to provide more opportunities and favourable conditions for local enterprises and residents. Moreover, aligning with global tax rules can help attract more international capital, enterprises and talent.
