“2+1” Policy – Global Investment Promotion Policy
“2”- Attracting investments for two key areas, manufacturing and headquarter enterprise. Focusing on the development of 20 strategic industrial cluster and higher-level headquarter economy.
“1” – One set of combined supportive policies, including financial incentive, taxation, technological innovation, finance, land use, energy use, employment, environmental protection, etc.
Regarding financial incentive policy, Guangdong has issued two representative policies, “Ten Policies for Foreign Investment” and “Ten Policies for Manufacturing”:
– Incentive will be offered to the new projects established in Guangdong with an annual actual foreign investment amount exceeding USD50 million (except for projects in the real estate industry, financial industry and quasi-financial industry) and projects with capital increment amount exceeding USD30 million. The incentive amount will be at least 2% of the foreign investment amount for the current year and the maximum incentive amount is RMB100 million.
– Incentive will be offered to the eligible multinational company’s regional headquarters with the actual annual foreign investment amount exceeding USD10 million. The incentive amount will be equal to 2% of the foreign investment amount for the current year and the maximum incentive amount is RMB100 million.
– For the enterprises which made annual contributions of more than RMB100 million to the Province, an one-off incentive of 30% of their respective annual contribution will be offered.
– Incentive will be offered to the manufacturing projects with a total investment amount exceeding RMB1 billion in Pearl River Delta cities and manufacturing projects with a total investment amount exceeding RMB500 million in East and Northwest Guangdong. The incentive amount will be at most 2% of the actual newly increased fixed assets investment amount.
Regarding the incentive of taxation, there are “double 15%” tax preferential policies in Hengqin, Qianhai, and Nansha regions. The first 15% refers to the policy that the eligible enterprises could enjoy 15% corporate income tax rate. The second 15% covers the high-ended talents in 9 cities of the Greater Bay Area that the eligible personnels could enjoy 15% individual income tax rate.
Regarding the supports to foreign R&D centers, according to national deployment, Guangdong has issued and implemented the “Guangdong Provincial Measures for the Qualification Review and Recognition of Duty Free Imported Equipment for Foreign R&D Centers” in August 2021. Once recognized as a foreign-funded research and development center, it will be eligible to enjoy the support of technology innovation import tax policies during the 14th Five Year Plan period, including exemption from import tariffs, import value-added tax, and consumption tax on imported technology development supplies, and full refund of value-added tax on purchased domestic equipment, etc.
Regarding the investment and trade liberalization and facilitation, the negative list of investment access for both domestic and foreign businesses in the region have been reduced to 27 items, and the negative list of manufacturing has been reduced to zero item. 37 ports in 9 cities of the Pearl River Delta has implemented tax refund policy and Nansha has preferential tax policies for international shipping insurance.
Regarding finance, Nansha has been approved by the State to carry out pilot free trade (FT) accounts. It is one of the first pilot areas in China to carry out high-level open foreign exchange management reform for cross-border trade and investment. Eligible finance leasing companies registered in the Guangdong Pilot Free Trade Zone can share foreign debt quotas with their respective special purpose companies (SPVs).
Regarding the cooperation between Guangdong, Hong Kong and Macau, professionals with Hong Kong and Macau practicing qualifications in architecture, planning, and tourist guide are allowed to directly practice in the Guangdong Pilot Free Trade Zone (“the FT Zone”) after registration. Hong Kong and Macau service providers can establish travel agencies in the FT Zone. Guangdong, Hong Kong and Macau law firm can partner to establish joint venture firm in the FT Zone.