Mutual recognition of qualifications between the Chinese mainland and Hong Kong and Macao’s special administrative regions has moved closer in Shenzhen’s Qianhai cooperation zone, with the latest stride being made in the tax field.

According to a guideline published by the Authority of Qianhai, qualified tax professionals from Hong Kong and Macao can now register to practice in Qianhai. In the past, they needed to pass a qualification exam before being allowed to practice.

The guideline states that qualified professionals need to be Hong Kong or Macao permanent residents who have obtained Hong Kong’s tax adviser qualification, or Macao’s auditor or accountant qualification

The new policy is part of broader efforts by Shenzhen to promote reform and opening-up and deepen integration with Hong Kong and Macao.

The guideline states that qualified professionals need to be Hong Kong or Macao permanent residents who have obtained Hong Kong’s tax adviser qualification, or Macao’s auditor or accountant qualification.

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They need to have the qualification for at least three years and have provided tax-related professional services for three consecutive years. Also, in order to be eligible, advisers must  have no record of administrative punishment due to irregularities.

“This new policy has lifted restrictions on providing cross-border tax services among professionals from Hong Kong and Macao, which will help establish closer tax-related service trade between Shenzhen and the two SARs. It will also further promote opening up of service industry in Qianhai and Guangdong-Hong Kong-Macao Greater Bay Area,” an official with the Authority of Qianhai said.

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According to the document, limits on the proportion of Hong Kong and Macao partners in tax accounting firms, which previously required that they could not be higher than 35 percent of the total number of partners, are loosened. 

They now also don’t need to practice at the partnership firms at least 180 days a year, which was previously a requirement.