Guangzhou has rolled out preferential individual income tax (IIT) policies in Guangdong-Hong Kong-Macao Greater Bay Area. From July 1 to August 15, eligible applicants can submit an application online.
Last year, Guangdong issued a Notice on Implementing the Individual Income Tax Preferential Policies in the Guangdong-Hong Kong-Macao Greater Bay Area (“the GBA”), which sets out the general framework for determining eligibility and extent of an individual income tax subsidy.
Guangzhou later rolled out a series of interim measures for the policies and recently released the application guidance with some FAQs. Let’s check the details!
Guide of the application for the IIT subsidies (in Chinese):
http://kjj.gz.gov.cn/attachment/0/93/93272/6436217.pdf
What’s the main content of Guangzhou’s subsidy policy?
The Interim Measures stipulate that overseas high-end talents and critically lacking talents who work within the administrative area of Guangzhou shall be given financial subsidies if their IIT paid in Guangzhou exceeds the tax amount computed at 15% of their taxable income.
The subsidies are granted on a lump-sum basis every year. It will be open for application and granted after the settlement and payment of IIT in the following year.
The period of IIT settlement in 2019 is between March 1 to June 30, 2020. And the applications for financial subsidies in 2019 are accepted from July 1 to August 15 this year.
You can check the “read more” to get the full content of the measures.
How to calculate the financial subsidy?
Where an applicant earns incomes under Article 10 of the measures, the applicable annual financial subsidy shall be computed with the following formula:
Financial subsidy=∑ (IIT balance by category each year × the proportion of IIT paid by category)
The proportion of IIT paid by category = the amount of IIT paid by category in Guangzhou each year ÷ the amount IIT paid by category in China each year.
Who are eligible for the subsidy?
- The overseas high-end talents conform to the standards of the Catalogue of Overseas High-end Talents in Guangzhou.
- The overseas critically-lacking talents conform to the Catalogue of Critically-lacking Talents in Guangzhou, and the taxable income of IIT in the tax year shall exceed RMB 300,000.
Meanwhile, the applicants mentioned above need to meet the following conditions:
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The applicant shall be a permanent resident of Hong Kong or Macao, a Hong Kong resident under the Hong Kong’s Admission Schemes for Talents, Professionals and Entrepreneurs, a Taiwanese resident, a foreigner, or a returned overseas Chinese or a returned overseas Chinese student who has obtained the right of long-term residence abroad;
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The applicant shall work or be employed by enterprises and other institutions registered in Guangzhou during the tax year, or alternatively provide independent personal services in Guangzhou, work in Guangzhou for a minimum of 90 days during the tax year, and pay IIT in Guangzhou according to law;
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Within three years before applying for financial subsidies, the applicant shall have no information records of major tax violations, no records of dishonest acts such as false reporting, false collection, fraud, misappropriation of financial funds, violation of scientific research ethics and integrity, and no records of serious violation of laws or regulations, such as being included into the blacklist of debtors for law enforcement, being subject to criminal punishment or ordered to suspend production or business, being revoked of the business license or permit, or receiving administrative punishment involving large sum of fine. The applicant is not directly or primarily responsible for the above acts or records of the withholding agent, nor is he the legal representative or responsible person of the withholding agent.
What materials are required for the application?
For overseas hight-end talents:
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Application Form for IIT Financial Subsidy from the applicant
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Applicant’s valid identity certificate
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Confirmation documents of the applicant’s qualification
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Materials to prove that the applicant’s annual working days in Guangzhou reach a minimum of 90 days
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Commitment Letter for IIT Financial Subsidy
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Materials to prove that the applicant is enlisted in talents projects
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For overseas critically-lacking talents:
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Application Form for IIT Financial Subsidy from the applicant
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Applicant’s valid identity certificate
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Materials to prove that the applicant’s annual working days in Guangzhou reach a minimum of 90 days
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Materials to prove that the applicant’s academic degree skill, qualification, and so on
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Commitment Letter for IIT Financial Subsidy
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Materials to prove that the applicant is enlisted in talents projects
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Must the applicant have both the A-type work permit and the confirmation letter for foreign high-end talents?
No. The eligible applicant holding any of them can enjoy the financial subsidies.
If you want to know more about the policies, please click “read more” to check the Interim Measures of Guangzhou for Administration of Financial Subsidies under Preferential IIT Policies in Guangdong-Hong Kong-Macao Greater Bay Area.
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SOURCE | Guangzhou Gov
