EnjoyLED

Reduce 15% tax! About intelligent and green lighting enterprises

On June 1, the State Administration of Taxation and the Guangdong Provincial Taxation Bureau forwarded the notice of the Ministry of Finance and the State Administration of Taxation on the preferential policies for enterprise income tax in Hengqin Guangdong Macao deep cooperation zone.

The overall plan for the construction of Hengqin Guangdong Macao deep cooperation zone clearly proposes to improve the preferential policies for enterprise income tax. The enterprise income tax will be levied at a reduced rate of 15% on qualified industrial enterprises in the cooperation zone, bringing all industries conducive to the moderate and diversified development of Macao's economy into the scope of the policy.

The notice specifies the specific contents and conditions of the preferential policies for enterprise income tax in the cooperation zone proposed in the Hengqin plan, promotes the enterprises in the cooperation zone to enjoy the "red envelope" of national tax in a timely manner, further strengthens the support for the construction of the cooperation zone, and promotes the moderate and diversified development of Macao's economy.

The notice specifies the specific applicable conditions and circumstances for tax reduction and exemption of enterprises in the cooperation zone, which is convenient for relevant enterprises to make comparison and declaration, and is highly operable.

Enterprises enjoying the preferential policy of levying enterprise income tax at a reduced tax rate of 15% shall meet the following two conditions:
First, the industrial projects specified in the catalogue of enterprise income tax preferences for Hengqin Guangdong Macao deep cooperation zone (version 2021) are the main businesses, and their main business income accounts for more than 60% of the total income; According to the catalogue of enterprise income tax preferences in Hengqin Guangdong Macao deep cooperation zone (2021), Article 45 of the high-tech industry shows that it includes energy system management, optimization and control technology: it mainly supports the application technology development for urban building heating balance and energy conservation, green buildings, urban intelligent lighting and green lighting systems.

The second is to carry out substantive operation, specifically, the actual management organization of the enterprise is located in Hengqin Guangdong Macao deep cooperation zone, and implements substantive and comprehensive management and control over the production and operation, personnel, accounts, property, etc.
The circular specifies that for enterprises with head offices in the cooperation zone, the income tax rate of 15% shall be applicable only to the head offices and branches in the cooperation zone that meet the conditions specified in this article; For enterprises whose head offices are located outside the cooperation zone, the tax rate of 15% is applicable only to the income of their branches located in the cooperation zone that meet the prescribed conditions.

In addition, the notice specifies that the income from new overseas direct investment of enterprises in tourism, modern service industry and high-tech industries established in Hengqin Guangdong Macao deep cooperation zone shall be exempted from corporate income tax, so as to promote the enterprises in the cooperation zone to "go out" faster and better, and specifies the conditions for new overseas direct investment income.