A 15% corporate income tax rate, applicable to qualified enterprises in Qianhai, now applies to the expanded 120.56-square-kilometer Greater Qianhai area, according to a notice issued by the city's finance and tax authorities last week.
For Hong Kong residents employed in Qianhai, the policy exempts the portion of their personal income tax exceeding the Hong Kong tax rate standard. Taxable personal income includes earnings from the Qianhai area (such as salaries, labor remuneration, royalties, and franchise fees), business income, and talent subsidies acknowledged by local authorities.
Crystal Wong, a young Hong Kong professional serving as an assistant to the president of Shenzhen Qianhai 40th Biotech Co. Ltd., highlighted the tangible benefits of this policy. Wong explained, "Consider one of our Hong Kong colleagues earning a monthly salary of approximately 20,000 yuan (US$2,762) — under this policy, her monthly tax payment would decrease by about 1,000 yuan."
Introduced in 2014 and revised in 2021, the 15% favorable tax rate policy specifies that Qianhai-based enterprises primarily engaged in sectors like modern logistics and information services are eligible if their main business income constitutes over 60% of total revenue.
Previously, this policy was confined to qualified enterprises and individuals within the original 14.92-square-kilometer Qianhai area before its eightfold expansion to encompass the Shekou area and parts of Bao'an District. The policy will remain valid until Dec. 31, 2027.