New preferential Individual Income Tax policy in Greater Bay Area of China
The Chinese Ministry of Finance and State Administration of Taxation recently issued a circular regarding the Individual Income Tax (“IIT”) preferential policy for the Guangdong-Hong Kong-Macau Greater Bay Area. Since the tax difference between Mainland China and Hong Kong is quite significant, the implementation of the IIT preferential policy will make the Greater Bay Area more attractive to talents and will boost the construction and development of the area.
New preferential tax policy for Small & Medium-sized Enterprises (SMEs) in mainland China
On 17 January 2019, the Chinese Ministry of Finance and State Administration of Taxation jointly issued a circular Cai Shui (2019) No.13 that sets out the new preferential tax policy available to qualified SMEs for the period from 1 January 2019 to 31 December 2021. The salient points of the new policy are as follows: