Tax incentives for overseas talents in Bay Area

Overseas high-end talents as well as talents that are in short supply working in the nine cities of Guangdong province within the Guangdong-Hong Kong-Macao Greater Bay Area are entitled to favorable personal income tax deductions, according to a notice released by the provincial finance department.

The notice stipulates that if the amount of individual income tax paid by those talents exceeds 15 percent of their taxable income, the excess part shall be subsidized by the governments of the nine cities. The subsidy is exempt from personal income tax and is granted once a year.

The scope of individual income taxes applicable to the tax incentives include salaries, income from remuneration for personal services, royalties, income from franchise royalties, operating income and subsidized income from talent projects.

The overseas talents as well as talents in short supply, as identified by relevant authorities, can include permanent residents of Hong Kong and Macao, Hong Kong residents who have obtained the entry plan of Hong Kong (talents, professionals and entrepreneurs), Taiwan residents, foreigners, returned overseas students who have obtained the right to long-term residency abroad, as well as overseas Chinese.

It is also specified that the notice is on a one-year trial and will be revised after the trial period.

The nine cities of Guangdong Province within the Guangdong-Hong Kong-Macao Greater Bay Area comprise Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing.