20 July 2023
On 20 July 2023, the State Taxation Administration issued the “Guidance on Preferential Tax Policies of Supporting Coordinated Development” (“the Guidance”). The Guidance specified that enterprises engaged in encouraged industries in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will enjoy a reduced corporate income tax rate at 15%. Hong Kong investors will be exempted from Value-added Tax (“VAT”) on the capital gain for transferring A-shares listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. In addition, overseas institutional investors are exempted from VAT for futures trading of domestic crude oil in China.