Guangdong, Hong Kong And Macau Overseas Talents Tax Preferential Policies Released

Recently, the Ministry of Finance and the State Administration of Taxation jointly issued the notice on preferential policies for personal income tax in the big bay area of Guangdong, Hong Kong and Macau (hereinafter referred to as "notice").

The notice made it clear that Guangdong and Shenzhen would subsidize the high-end talents and the shortage of talents in the overseas area (including Hong Kong, Macao and Taiwan, the same below) in accordance with the difference in the personal income tax burden between the mainland and Hongkong, which is exempted from personal income tax.

The notice clearly stated that the identification and subsidy measures for overseas high-end talents and scarce talents working in Tai Wan district should be carried out in accordance with the relevant regulations of Guangdong and Shenzhen.

In addition, the notice has been implemented from January 1, 2019 to December 31, 2023. The scope of application includes the nine cities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing in the Pearl River Delta area, Guangdong.

The director of income tax department of the Ministry of Finance and the State Administration of Taxation pointed out that in order to support the construction of the big bay area of Guangdong, Hongkong and Macau, and attract overseas high-end talents and scarce talents to work in Tai Wan District, in accordance with the unified arrangement of the Party Central Committee and the State Council, the Ministry of Finance and the State Administration of Taxation formulated and formulated the preferential tax policy for personal income tax in Guangdong, Hongkong and Macau, and subsidized the difference of personal income tax between the mainland and Hongkong, and exempted personal income tax from subsidies.

"The introduction of this policy has greatly reduced the actual tax burden of overseas talents working in Tai Wan District, and will play a positive role in guiding and promoting the gathering of talents in Tai Wan district."

The person in charge pointed out.

As for the identification of overseas high-end talents and scarce talents, the responsible person said, at present, there is no uniform criterion for the application of "talents" internationally and in China, and the demand and definition of talents in different regions and industries are also different.

In order to better meet the actual needs of the Da Wan District, the notice stipulates that the identification of overseas high-end talents and scarce talents working in Tai Wan district should be carried out in accordance with the relevant regulations of Guangdong and Shenzhen, that is, the determination of overseas high-end talents and scarce talents by Guangdong and Shenzhen.

In this way, the preferential policies are consistent with the actual needs of the local areas, so as to better play the incentive effect of the policy.

The director also said that since 2013, Guangdong, Shenzhen, Qianhai and Fujian Pingtan have implemented the subsidy policy for personal income tax differences between Hong Kong, Macao and Taiwan residents and overseas high-end talents.

Guangdong Hengqin and Shenzhen Qianhai belong to the scope of the big bay area of Guangdong, Hongkong and Macau. The introduction of the preferential policies for personal income tax in Tai Wan District will cover the existing policies of Hengqin and Qianhai. Therefore, the two preferential policies for personal income tax in Guangdong Hengqin and Shenzhen Qianhai will be abolished from the date of implementation of the new policy.