Overseas Talents Can Get Tax Subsidies in the Greater Bay Area!

4月 18, 2024 elitestage No Comment

In December 2023, several cities in the Greater Bay Area, including Guangzhou, successively issued notices on Guidelines for the Application of Financial Subsidies under the Preferential Individual Income Tax Policies in Guangdong- Hong Kong- Macao Greater Area for Overseas Talents and Measures for Administration of Financial Subsidies under Preferential Individual Income Tax Policies in Guangdong-Hong Kong-Macao Greater Bay Area (2023 Revision).

Earlier in August, the Ministry of Finance and the State Administration of Taxation of China issued the Notice on the Extension of the Implementation of Preferential Individual Income Tax Policies in Guangdong-Hong Kong-Macao Greater Bay Area.

The Guangdong-Hong Kong-Macao Greater Bay Area cities refer to the nine cities in the Pearl River Delta, including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing.Eligible overseas talents (including high-end talents and critically lacking talents) who work within the administrative area of the cities above-mentioned shall be given financial subsidies if their Individual Income Tax (IIT) paid in their cities exceeds the tax amount computed at 15% of their taxable income in the tax years of 2020, 2021, and 2022 (i.e., January 1 to December 31 of the respective calendar years). The subsidy is exempt from IIT. The maximum financial subsidy for IIT per taxpayer per tax year is RMB 5 million.

1 IIT Breakdown

The Individual Income Tax (IIT) paid refers to

Wage and salary income (including non-resident individual’s income received as monthly bonuses and equity incentive.Income from Provision of Independent Personal Services.Income from Author’s Remuneration.Income from Royalties.

Income from Business Operation.

Income from Subsidies Supported by Talent Policies.

What are the criteria for recognizing high-end talents and critically lacking talents?

The recognition criteria for each of the above cities may vary, and the following is a catalog of high-end talents and talents in short supply in Guangzhou as an example.High-end talents eligible for the financial subsidies under the preferential IIT policies in GBA refer to individuals working in higher education institutions, research institutions, medical institutions, public health institutions, or holding positions as middle and senior-level management or key technical personnel in enterprises of key development industries who meeting one of the following conditions:Hold a “Foreigner’s Work Permit” (Category A).Hold a “Confirmation Letter for Foreign High-end Talents”.Hold a “Confirmation Letter for High-level Talents in the 9 Cities of the Pearl River Delta as Independent Innovation Demonstration Zone and Jieyang Sino-Germany Metal Ecological City”.

Recognized or assessed as high-level talents by the national, Guangdong province, or Guangzhou city talent authorities.

2 Enterprises of Key Development Industries Breakdown

Enterprises of key development industries include:

1. Production and manufacturing enterprises and technology-oriented enterprises in Guangdong Province’s ten strategic pillar industries and ten strategic emerging industries;

2.Production and manufacturing enterprises and technology-oriented enterprises in Guangzhou City’s pillar industries and strategic emerging industries;

3.Manufacturing and technology service enterprises.

3Critically-Lacking Talents Breakdown

Critically-lacking talents eligible for the financial subsidies under the preferential IIT policies in GBA refer to individuals working in schools, research institutions, medical institutions, public health institutions, or enterprises in key development industries in the city with an annual IIT payable exceeding RMB 300,000. Additionally, they should possess technical expertise, skills or middle to senior-level managerial abilities that match their job responsibilities.

Enterprises in key development industries include:Production and manufacturing enterprises and technology-oriented enterprises in Guangdong Province’s ten strategic pillar industries and ten strategic emerging industries.Production and manufacturing enterprises and technology-oriented enterprises in Guangzhou City’s pillar industries and strategic emerging industries.

Manufacturing service industries.

Modern service industries such as accounting, law, finance, consulting, research and development, design, commerce and trade services, advertising, media, cultural tourism, and other key development industries in Guangzhou and Guangdong.

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