Tax subsidy benefits high-end professionals

 Over 3,100 high-end professionals from overseas who work in Shenzhen have applied for a subsidy for the individual income tax that was implemented in the Guangdong-Hong Kong-Macao Greater Bay Area by the Central agencies.

Since the rule was implemented in Shenzhen in August, the city has worked out detailed plans and more than 3,000 overseas professionals had applied by the Sept. 15 deadline, Gu Yunhong, deputy director of the Shenzhen Municipal Human Resources and Social Security Bureau, said at a press conference yesterday.

The “professionals” refer to permanent residency holders in Hong Kong and Macao, or mainland people who have received permanent residency permits through talent programs in Hong Kong and Macao and have had their mainland hukou canceled, Taiwan residents and foreign nationals whose taxable income have reached a specified limit, and returned professionals from overseas who have obtained a permanent residency permit overseas.

They can apply for the subsidies as long as they have worked in Shenzhen for more than 90 days and have paid taxes according to the law if they meet one of the following criteria:

1. They have been selected into the talent programs of national, provincial and municipal levels, obtained category A or category B work permits, Guangdong talent cards, or high-end professional certificates.

2. They are managerial talent at or above the middle level of a company or a member of a research team engaging in national, provincial or municipal-level major innovation platforms.

3. They are members of research teams in higher learning institutions, research institutes or hospitals, or members of research teams that carry out key research tasks above the municipal level.

4. They are talented staff members working at high-tech companies, major enterprises, listed companies or headquarters companies that have been accredited by the Shenzhen government, or in key industries or key areas of the city.

The subsidy standard is based on the tax discrepancies of tax bases between Shenzhen and Hong Kong, according to Gu.

Gu cited an example. If an executive needs to pay 250,000 yuan (US$37,925) in taxes in Shenzhen for his 1 million yuan income as compared to 150,000 yuan in taxes in Hong Kong for the same income, Shenzhen will offer a 100,000-yuan subsidy in taxes for the discrepancy.

“This subsidy policy has received a warm response from professionals and employers as well because it lowers costs and builds up the competitiveness of enterprises and reduces the tax burden for professionals,” said Gu.