China Tax Alert - Issue 11, May 2014
The MOF and SAT jointly released Circular 26 on 25 March 2014 which officially states the policy for qualified companies in three new areas – Hengqin New Area (“Zhuhai Hengqin”) , Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (“Shenzhen Qianhai”) and Pingtan Comprehensive Experimental Zone (“Fujian Pingtan”) – to enjoy a reduced Corporate Income Tax (CIT) rate of 15 percent. The publication of Circular 26 also finally clarifies the uncertainties surrounding the CIT incentive policy. This is a welcome development for companies contemplating investing and settling in Zhuhai Hengqin, Shenzhen Qianhai and Fujian Pingtan, as the CIT policy is the major attraction for these three new areas.
© 2021 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in China, KPMG, a Macau partnership and KPMG, a Hong Kong partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.