Shenzhen’s Qianhai economic zone plans to unveil a set of tax incentives to lure financial firms to the financial test bed, Caixin reported Thursday.
Financial firms will be granted a full rebate on their local income tax for five straight years but only if they are approved by the state financial authority and industry regulators in Shenzhen, the report said, citing unidentified sources.
Staff from these firms will also be offered incentives linked to individual income tax, home purchases, rental allowances and settlement bonuses, it said.
The authority will allot 500 million yuan (US$821 million) a year to support development of the financial industry in Qianhai, of which 300 million yuan will be used to subsidize corporate income tax.
The move came after these firms were excluded from tax incentives released earlier this year.
In April, Qianhai pledged a 15 percent corporate income tax break for firms in logistics, information services, technological services and cultural innovation sectors. But, contrary to expectations, the financial services sector was not included in the scheme.
The Qianhai special economic zone has been established as a test bed for China’s yuan liberalization and financial reforms. However, market players are still awaiting more specifics from policymakers.
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