Page 48 - OHKF_Biotech_EN

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tech corporations. For start-ups, the Singaporean government
Policy recommendations for the governments of Hong Kong and Shenzhen
Recommendation 1.1 Attracting leading
enterprises to establish a presence in the Loop offers tax exemptions of a given percentage on the first
SGD 200,000 of chargeable income. As for tax incentives for
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In the near future, both governments, including InvestHK, the research and development, the Australian government has a tax
Economic and Trade Office of the Hong Kong SAR Government rebate based on R&D costs. In contrast to tax deductions
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and the Hong Kong Science and Technology Parks Corporation provided in Hong Kong and Shenzhen, this tax refund allows tech
(HKSTP) on the Hong Kong side; and the Shenzhen Science and companies without a profit to receive a direct refund of part of
Technology Innovation Commission and Commerce Bureau of their R&D expenses. Owing to its long R&D cycle and huge
Shenzhen Municipality on the Shenzhen side, should reach out to amount of capital required, biotech enterprises take more time to
leading enterprises proactively. make a turnover than their conventional counterparts. Therefore,
a tax refund policy is of vital importance to biotech start-ups.
They can offer tax relief, rent reduction and government-
guaranteed low-interest loans, in the hope of attracting leading As for Shenzhen, not only is the tax rate higher, but tax
biotech corporations in China and overseas to establish their concessions of a similar nature are absent. Though eligible
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headquarters or R&D centres in the Loop. They will in turn develop enterprises are entitled to a lower tax rate, the Shenzhen park is
into anchor institutions in the area. excluded from the area covered by the enterprise income tax
concession pilot programme. However, more open economic
In relation to tax mechanisms, though the profit tax rate in Hong reforms have been put in place in other areas of China. Since
Kong is lower than those in Singapore and Australia, the latter two 2020, the Hainan Free Trade Port, for one, has implemented lower
offer more attractive tax concession policies (see Table 4). In tax rates (15%) for certain industries, including medicine, scientific
terms of tax concessions for enterprises, Singapore offers research, technological service, etc. To avoid inconsistency in
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tailormade incentives–a tax exemption for 5 to 15 years–to high tax concession policies in the two parks, the governments of

38 InvestHK of the Hong Kong SAR Government provides professional advice and services to support overseas and Mainland entrepreneurs, SMEs and multinationals that wish to set up an
office or expand their existing business in Hong Kong from the planning stage right through to the launch and expansion of their business.
39 With their 17 and 13 offices in the Greater China Region and overseas respectively, Hong Kong Economic and Trade Offices (HKETOs) are responsible for enhancing the world’s knowledge
about the unique advantages of Hong Kong, boosting the economic and trade benefits of Hong Kong, and supporting enterprises on their business expansion in Hong Kong.
40 Tax concessions in the mainland China are applicable to: corporate income tax rate for high-tech enterprises with support from the State, Small and Thin-profit Enterprises, and selected
industrial enterprises in Qianhai, Hengqin and Pingtan in Fujian Province. The tax rates are 15%, 20% and 15% respectively.
41 For details, please see “Notice Concerning Preferential Corporate Income Tax Policy in the Hainan Free Trade Port” issued by the Ministry of Finance and the State Administration of Taxation
in 2020.
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