As big data on tax shows that as of the first half of 2023, the number of enterprises in Hengqin engaging in technology R&D and high-end manufacturing industries accounted for 63.3% of the number of enterprises in the four major industries in the Guangdong-Macao In-depth cooperation zone, and the tax scale ranked second among the four major industries.
In recent years, various tax and fee policies have been implemented to support scientific and technological innovation in Hengqin, effectively contributing to the better development of the entire innovation chain and all links. According to the data, in 2022 the tax reductions and exemptions, including 1) the 15% corporate income tax enjoyed by high-tech industry tax-related business entities; 2) deduction of research and development expenses; 3) tax reimbursement enjoyed by high-tech enterprises and software enterprises, reached about 2.7 billion RMB in total.
In 2022, enterprises in Hengqin enjoyed a total of 3.509 billion RMB in deduction for research and development expenses, a year-on-year increase of 46.03%, and 85% of Hengqin’s high-tech enterprises have benefited from the deduction. In March this year, the deduction ratio of eligible R&D expenses has been increased 75% to 100%, a long-term institutional arrangement.
In Macao-Hengqin Youth Entrepreneurship Valley, the average annual growth of tax-related market players exceeds 100. Companies engaged in business services, information software technology, and scientific research technology account for 70% of the total number of enterprises. Enterprises within the valley enjoyed a total of more than 700 million RMB worth of tax reductions and exemptions.
“Here in Hengqin, we get a series of supportive policies and services, such as preferential tax policies, subsidies for talent recruitment and venues. As a software company, in the past year, we enjoyed a deduction of more than 4.3 million RMB for research and development expenses, and 330,000 RMB tax treat,” said Elwin Ho, CEO and co-founder of Pachira Era (Zhuhai Hengqin) Information Technology Co., Ltd., and winner of the first China Hengqin Science and Technology Entrepreneurship Competition.
Elwin Ho also pointed out that, “In Hengqin, you can also find preferential policies for high-end talent and personal income tax for Macao residents, which are very conducive to the introduction of domestic and foreign talent by enterprises. We believe that as long as there is a good platform and good job opportunities, talent will surely choose to stay.” MDT/NEWSGD