Guangzhou has recently issued measures on IIT subsidies for overseas talents. Today, we will share some FAQs on the policy and help you get clear of it.
In order to attract high-level overseas talents and promote the development of Guangdong-Hong Kong-Macao Greater Bay Area (GBA), Guangzhou re-informed the Measures for the Administration of Financial Subsidies under the Preferential Individual Income Tax (IIT) Policy in the GBA.
How can overseas talents enjoy the subsidies under the new policy? Let’s find out!
What does the GBA’s preferential IIT policy provide for specifically?
For high-end and critically-lacking overseas talents working in Guangzhou’s administrative area, the portion of IIT that has been paid in GZ and that exceeds the tax calculated at 15% of taxable income will be reimbursed in the form of a financial subsidy.
This subsidy is exempt from IIT.
Do I need to declare the IIT-exempt subsidy?
No. In order to simplify the application process and streamline the application paperwork, applicants can enjoy the preferential IIT exemption directly without declaring it.
What requirements does an applicant need to meet to apply for the subsidy?
The applicant must meet the standards specified in the Catalogue of High-End Overseas Talents in Guangzhou or the Catalogue of Critically-Lacking Overseas Talents in Guangzhou, as well as the identity, job and integrity requirements stipulated in the policy.
Can I enjoy this policy if I have acquired a foreign nationality during the year?
If an applicant meets the requirements of the policy during the tax year due to the acquisition of the right of long-term residence abroad or a change in nationality or resident status, the applicant shall enjoy the financial subsidy starting from the month following the acquisition of the right of long-term residence abroad or the change in status.
Conversely, if during the tax year the applicant no longer meets the requirements stipulated in the policy due to the loss of the right of long-term residence abroad or a change in nationality or resident status, the applicant will no longer enjoy the financial subsidy starting in the month following the loss of the right of long-term residence abroad or the change in status.
For the purposes of the policy, do my “taxes paid in GZ” only include IIT paid for my salary income?
Under the policy, “taxes paid” refers to IIT paid for the following income streams in accordance with the Individual Income Tax Law of the People’s Republic of China:
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Remuneration for labor services;
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Business operating income;
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Subsidized income from talent projects or talent programs administered by governments, governmental departments or institutions directly affiliated with governments at the district level or above.
How should the applicant calculate the number of days when the applicant has worked in GZ for more than 90 days total in a tax year
The applicant’s work days in GZ include the actual days when the applicant has worked in Guangzhou and the days of public holidays, personal leave, business trips and training that the applicant has enjoyed in China and abroad during the applicant’s employment in GZ.
If the applicant stayed in the city for less than 24 hours in a day, that work in Guangzhou shall be calculated as half a day.
The applicant should note that this regulation is different from the calculation of working days stipulated in the Announcement on the Individual Income Tax Policy for Non-Resident Individuals and Residents Without a Residence (Announcement No.35, 2019 of the Ministry of Finance and the State Taxation Administration).
If the applicant only works abroad or in another city within China during the tax year, the applicant’s work days in GZ should be zero, even if the applicant’s employer is in the city.
If an applicant is eligible, when should the application be submitted?
The financial subsidy is processed once a year. SCGZ [2021] No.1 has extended the application period from July 1 to August 15 in the following year to July 1 to August 31 in the following year.
For the financial subsidy for the 2020 to 2022 tax years, applicants who meet the subsidy requirements but fail to apply within the prescribed time can apply for the subsidy during the next year’s application period.
However, those who fail to apply for the subsidy again will not be accepted or granted the subsidy.
Starting in the 2023 tax year, there will no longer be a supplementary application period for those who fail to apply for the financial subsidy by the deadline.
Which department handles the subsidy in GZ? How can the subsidy be applied for specifically?
For high-end overseas talents, Guangzhou’s municipal and district science and technology departments accept applicants for the subsidy and review and grant the subsidies.
For critically-lacking overseas talents, Guanzhou’s municipal and district human resources and social security departments accept applications for the subsidy and review and grant the subsidies.
Applicants should register and log in to the government affairs service website of Guangdong province and search for the Preferential IIT Policy’s Financial Subsidy for the GBA (High-End Overseas Talents / Critically-Lacking Overseas Talents). All of the procedures can be completed online.
Web: https://www.gdzwfw.gov.cn/
What functions does the Natural Person E-Tax Bureau’s Tax E-Check for GBA Talents perform?
The Tax E-Check for GBA Talents provides convenient and efficient services such as query, printing, saving and transmission of IIT data for high-end and critically-lacking overseas talents.
It serves as a portal for transmitting information between overseas talents and relevant departments in Guangzhou, and it makes the IIT subsidy application process more convenient for overseas talents.
How can an applicant query and retrieve IIT data?
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Log in to the website of the Natural Person E-Tax Bureau (http://etax.chinatax.gov.cn)
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Click on Featured Functions
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Choose Guangdong province
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Enter the Tax E-Check for Talents in GBA
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Authorize the query of IIT data in the tax year (2019 or 2020)
After the query, the system will automatically generate a query serial number.
If the applicant applies for the GBA’s IIT financial subsidy through the government affairs service website of Guangdong province and enters the query serial number when filling in the application form, the system will automatically retrieve the applicant’s tax data.
We will keep following the preferential policies on taxation and other issues. Stay tuned!
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SOURCE | GZ Gov / 广州税务
