The Ministry of Finance and the State Taxation Administration of the PRC jointly released the Notice Concerning Continued Implementation of the Preferential Corporate Income Tax Policy in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Caishui No.3 [2026]) on 6 February 2026. According to this notice, the preferential corporate income tax (CIT) policies for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will be extended to 31 December 2027.
The specific preferential corporate income tax policies for the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone are as follows:
Qualified enterprises in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone may enjoy a reduced Corporate Income Tax rate of 15%.
Enterprises which enjoy a reduced Corporate Income Tax rate of 15% shall mainly engage in the business sectors specified in the Catalogue of Preferential Enterprise Income Tax in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (2021 Edition), and the revenue derived from their core business shall account for at least 60% of their total revenue.
Enterprises whose headquarters located in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone are allowed to enjoy the reduced Corporate Income Tax rate of 15% for qualified headquarters and branches registered in the Zone; enterprises whose headquarters located outside of the Zone are only allowed to enjoy the reduced Corporate Income Tax rate of 15% for qualified branches registered in the Zone.
To be qualified for the reduced Corporate Income Tax rate of 15%, an enterprise must meet the substantial operation requirements. If an enterprise is registered in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone only, while any of its production and operation, personnel, finance, or property etc. are not in the Zone, it will not be considered to have substantial operations in the Zone and thus cannot enjoy the reduced Corporate Income Tax rate of 15%.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
