China has unveiled a masterplan for constructing the Guangdong-Macao Intensive Cooperation Zone at Zhuhai’s Hengqin island. The masterplan sets out a series of policies, many of which are similar to those implemented at the Hainan Free Trade Port (FTP). The policies include setting up a special customs supervision system as well as rolling out financial and tax incentives for corporates and individuals.
On September 5, 2021, the State Council released the Masterplan on the Construction of Guangdong-Macao Intensive Cooperation Zone (hereafter “masterplan”), in a move to diversify Macao’s economy.
The Cooperation Zone is located at Hengqin – the largest island in South China’s Zhuhai city and in close proximity to Macao (separated by a river, Hengqin is only 200 meters away from the nearest point of Macao).
According to the masterplan, the Guangdong-Macao Intensive Cooperation Zone (ICZ) will be managed under special customs supervision between “two lines”. Eligible enterprises registered in the Zone will be entitled to a reduced corporate income tax (CIT) rate of 15 percent. Qualified talents and Macao residents working there will be subject to lower individual income tax (IIT) liabilities. (Source: China-Briefing.com)