Guangdong-Macau SAR’s in-depth cooperation plan attracts foreign investors
João Nuno Riquito and Valéria Wong of Riquito Advogados provide an update on Guangdong-Macau SAR’s in-depth cooperation plan including tax relief measures
The Guangdong-Macau in-depth cooperation zone in Hengqin was officially released in September 2021 and is an important step for the implementation of the Outline Development Plan for the Guangdong-Hong Kong-Macau Greater Bay Area (the plan), launched in February 2019.
Due to its cultural and historical background, the Macau SAR will play its role as the connecting point to the Portuguese speaking countries (PSCs) to assist in creating a financial services platform between China and the PSCs. It is encouraged to set up multi-currency investment funds as well as private equity investment funds, aimed at attracting foreign investors in the advanced and innovated technological industry, as well as in the cooperate zone.
Macau SAR is encouraged to develop modern financial activities in the cooperate zone, such as wealth management, bonds market and financial leasing. Furthermore, the threshold for banking and insurance institutions will be lowered when financed with local capital.
Some tax relief measures are defined in the plan, such as the following: the reduction of profit tax to 15% for certain businesses established in the cooperation zone, namely those businesses that are beneficial to the development of an adequate diversification economy of Macau SAR; certain businesses established in the cooperate zone will be exempted from profit tax, including the tourism industry, the industries of modern services as well as of advanced and innovated technologies, as the revenues of their business activities are deemed to result from direct foreign investment.
João Nuno Riquito
Managing partner, Riquito Advogados
Associate, Riquito Advogados