Sci-tech R&D, high-end manufacturing, brand industries like TCM, culture, tourism, conventions, and exhibitions, as well as modern finance industries in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin have experienced high-quality development since the zone's establishment in September 2021 due to efforts made by Hengqin taxation departments in reducing tax burdens for enterprises. 

The total tax refund, reduction, and mitigation conducted by Hengqin taxation departments from September 2021 to July 2022 reached around 2.8 billion yuan ($402 million).

Macao-Hengqin Youth Entrepreneurship Valley [Photo courtesy Zhuhai Media Group]

More than 70 percent of Hengqin enterprises are now eligible for the preferential policy on the full refund of value-added tax (VAT) allowance, while more support has gone to innovation and entrepreneurship, with 2.5 billion yuan ($359 million) of corporate income taxes deducted for those carrying out research and development. 

The tax burden of Macao residents in Hengqin has been reduced by 70 percent to the similar level of those in Macao. Enterprises in Hengqin can enjoy a 15-percent discount in paying corporate income taxes, with number of enterprises applying for such a discount increasing by 62.5 percent since the zone's establishment.

The Cooperation Zone has recorded an average monthly increase of 500 tax-related market entities from September 2021 to August 2022, of which 77 percent of them are involved in the four major industries of Hengqin. The number of Macao-funded enterprises in Hengqin now stands at around 5,000, an increase of 8 percent of that before the zone's establishment. 

The integrated circuit design service, computer and electronic equipment manufacturing, as well as internet platform service industries are the top three Hengqin industries in terms of tax revenue growth. 

In addition, all taxation affairs in Hengqin are now able to be handled contactless with improved efficiency, further reducing enterprises' costs.