Certain Measures for Supporting the High Quality Development of Guangdong through Taxation

The English content in the article is based on courtesy translations only. If there is any inconsistency or ambiguity between the English content and the original document in Chinese, the Chinese version shall prevail. The full text of the original document in Chinese can be found at https://guangdong.chinatax.gov.cn/gdsw/ssfggds/2023-05/22/content_abc588a37b0d475a890afff22180c85f.shtml

On 22 May 2023, the Guangdong Provincial Tax Service, State Administration of Taxation released the " Certain Measures for Supporting the High Quality Development of Guangdong through Taxation" (hereafter “Measures”) with policy measures focus on areas including serving the development of the Guangdong Hong Kong Macao Greater Bay Area as the demonstration for high quality development, serving the real economy and facilitating innovation driven development in the Guangdong Province. Some of the highlights of the Measures are set out below:

Serving the construction of the Guangdong Hong Kong Macao Greater Bay Area in the new stage

  • Fully leverage regional tax preferential policies as incentives
  • Promote the integration of tax collection, management, and services in the Guangdong Hong Kong Macao Greater Bay Area

Promoting the development of the real economy and serving the manufacturing industry

  • Continue to implement tax rebates to assist acceleration of the development of the manufacturing industry 
  • Fully supporting the development of small and medium-sized enterprises in the manufacturing industry through tax reduction and preferential tax treatments 
  • Provide "one project, one special class" and "one enterprise, one policy" precise services

Supporting technological self-reliance and shaping new driving forces for development

  • Comprehensively implement preferential income tax policies to serve innovation driven development, including a 15% reduction in corporate income tax for high-tech enterprises, a 100% additional deduction for research and development expenses, a 100% additional deduction for investment in basic research, and a one-time deduction for purchasing equipment and instruments
  • Promote deep integration of the innovation chain, industry chain, and supply chain

Stabilizing foreign investment and trade, expanding consumption and investment

  • Support the development of traditional trade and new forms of foreign trade such as accelerating the processing speed of export tax refunds and "no ticket tax exemption" for cross-border e-commerce retail exports.
  • Improve the "going global" and "bringing in" service models through steadily promoting the negotiation and signing of advance pricing arrangements, further making good use of tax agreements, carrying out pilot work on "institutional facilitation measures for non-resident individual taxpayers"
  • Boost domestic demand and consumption in key areas through phased exemptions for new energy vehicle purchase tax, exemptions for new energy and energy-saving vehicle and vessel tax, preferential policies for value-added tax on the sale of second-hand cars, and refunds of value-added tax incremental tax deductions for 13 specific industries, and additional value-added tax deductions for production and living services