China will continue implementing the IIT preferential policy for the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) until the end of 2027. The policy subsidizes the tax burden difference between the mainland China and Hong Kong IIT rates (specifically, the tax amount paid exceeding 15% of the taxable income). This subsidy, which is exempt from IIT, applies to overseas (including Hong Kong, Macau, and Taiwan) high-end and high demand talents working across the nine cities of the Greater Bay Area.
On May 15th, 2024, relevant Shenzhen municipal government departments have released the “Application Guidelines of the financial subsidies on 2023 Individual Income Tax (IIT) for Overseas High-end and High-demand Talents in Shenzhen” (the Guidelines), detailing the application process for these subsidies.
- Starting from 15 May 2024, applicants should submit their application materials for review to their employers through the Guangdong Provincial Government Services Website (https://www.gdzwfw.gov.cn/). After reviewing the materials and providing a written statement and commitment, the employer shall submit the application through the system by 15 June 2024;
- An applicant who is reporting income from personal services may apply independently. Nevertheless, the application must be processed through the employer if the tax amount paid includes IIT from wages or salaries.