China (Guangdong) Pilot Free Trade Zone System Innovation & Policies
02 14, 2015 Source:
Pre-establishment national treatment and negative list management mode will be implemented for overseas investment. For fields that fall outside of negative lists, investment projects will be filed.
Enterprises’ normal overseas investment projects in the Pilot Free Trade Zone will go through record management, excluding those must be authorized by the State Council.
Overseas investment projects authorization (put on record), the examination and approval of establishment of foreign-invested enterprises and modification (put on record), the registration of establishment of commercial entities, organization code certificate, tax registration certificate (national tax, local tax), social security registration number, seal for the record and other matters can be handled by an “integrated service” mechanism. Gradually business license, organization code certificate, tax registration certificate, and so on, will be brought together into one single certificate using one single number.
At Guangzhou’s Nansha Bonded Port Area, Shenzhen’s Qianhai Bay Bonded Port Area and other areas with special customs supervision within the Pilot Free Trade Zone, entry and exit supervisory services will be carried out in line with “first line opening”, “highly efficient control in the second line”. In Zhuhai’s Hengqin Area, hierarchical management will run according to the principles “relaxed restriction in the first line, effective control in the second line, people and goods separated and systematic management” stipulated by the State Council.
Goods coming into Guangzhou’s Nansha Bonded Port Area, Shenzhen’s Qianhai Bay Bonded Port Area or Zhuhai’s Hengqin Area (hereafter collectively referred to as the pilot zone) can be first brought in on the back of import manifests with the customs declaration formalities being dealt with in steps. Exported goods can first be declared at customs and then cleared at the port by customs. The storage and logistics of enterprises within the pilot zone are exempt from inspection and quarantine.
A comprehensive management service platform for trans-departmental trade, transportation, processing, storage, and other operations will be established, creating a singular window for international trade.
Measures for Furthering Opening Up
The Pilot Free Trade Zone further cancels or relaxes access restrictions for overseas investors, such as qualification requirements, equity ratio limit and business scope. There are 34 measures for opening wider to the whole world in six fields, namely manufacturing, financial service, maritime transport service, commercial trade service, professional service and technology, and cultural service; there are 28 measures for further opening up to Hong Kong and Macao in six fields, namely financial service, maritime transport service, commerce and trade service, professional service, technology and cultural service, and social public service.
Promote the cooperation and innovative development of cross-border renminbi business, and drive renminbi as the major currency for the Pilot Free Trade Zone and overseas cross-border large-amount trade as well as investment valuation and settlement.
Establish financial service system catering to service and trade liberalization of commercial trade, tourism, logistics and information between Guangdong, Hong Kong and Macao.
Explore to carry out cross-border investment and finance innovation business through free trade accounts and other risk controlled manners. Carry out pilot foreign exchange management reform with capital account convertibility, to promote the investment and finance exchange facilitation in the Pilot Free Trade Zone.
Personnel Management Innovation
The Pilot Free Trade Zone gives special policies to elites from Hong Kong, Macao and foreign countries, in departure and entry, stay and residence in China Mainland, project application, innovation and entrepreneurship, evaluation and incentive, service protection and so on. Mutual recognition of personnel qualifications in service industry between Guangdong, Hong Kong and Macao will be promoted by special institutional arrangements.
Tax policies which have been piloted in China (Shanghai) Pilot Free Trade Zone apply in China (Guangdong) Pilot Free Trade Zone in principle.
Internal the Pilot Free Trade Zone, the scope of implementation in customs special supervision areas and the scope of application of tax policy remain unchanged.
Consummate tax policies impose to overseas equity investment and offshore business development; consummate pilot tax refound policies impose to the port of departure; apply foreign tourists shopping and tax refound policy in eligible areas.
Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen, Hengqin Area of Zhuhai levy 15% corporate income tax on eligible enterprises.