Notice from the Authority of Qianhai of the Shenzhen Municipality and Finance Commission of Shenzhen Municipality on Issuing the Measures on Financial Subsidy of Individual Income Tax ("IIT") for Overseas High-end Talent and Talent in Short Supply in the Shenzhen Hong Kong Modern Service Industry Co-operation Zone in Qianhai, Shenzhen (Shen Qian Hai Gui [2019] No. 2)

17 January 2019

The Authority of Qianhai of the Shenzhen Municipality and the Finance Commission of Shenzhen Municipality jointly issued the above notice on 17 January 2019. According to the notice, qualified overseas talents working in Qianhai may receive financial subsidy for the portion of IIT paid which exceeded IIT rate at 15% and such financial subsidy would be exempted from IIT. The notice will take effect on 28 January 2019 and is valid until 31 December 2020.

Abstract

In order to attract overseas high-end talents and talents in short supply ("Talents") to work in the Shenzhen Hong Kong Modern Service Industry Co-operation Zone in Qianhai ("Qianhai"), the Shenzhen Government has proposed the following measures regarding individual income tax ("IIT") financial subsidy for Talents.

Talents who meet the needs of industrial development in Qianhai would be offered a financial subsidy from the People's Government of Shenzhen on the portion of IIT paid that exceeds 15% of the IIT payable. The above financial subsidy received is exempted from IIT.

The IIT paid in the circular refers to IIT paid on wages, salaries, bonuses, year-end bonuses, profit shares, subsidies, allowances earned by individuals by virtue of the holding of any office or employment and other income earned by individuals relating to the holding of any office or employment.

Application timeline, procedures and required documentation

At the beginning of each year, the Authority of Qianhai accepts applications for the previous fiscal year. Applications may be made within two years following the fiscal year of which the applicant has worked in Qianhai for 90 consecutive days or more.

The Authority of Qianhai accepts applications from enterprises or organisations. Applications on income derived from personal services may be made by individuals.

Institutional or individual applicants should submit the following documents:

1. Acknowledgement for talent eligibility and the application form for IIT financial subsidy for Talents
2. Valid identification proof of the Talents
3. Proof of relationship between the Talents and the Qianhai enterprise and the proof of the Talents having worked in Qianhai for 90 consecutive days or more for the corresponding fiscal year
4. Salary proof and IIT payment certification documents of the Talents
5. Valid supporting documents from the Authority of Qianhai acknowledging the Talents' identity, salary, taxable income and IIT paid. If any abnormal circumstances are identified during the assessment process, the Authority of Qianhai reserves the right to provide other supporting documents to substantiate the Talents' identification or financial subsidy application.

After approval from the Authority of Qianhai and a 7-day declaration period, the financial subsidy will be debited to the applicant's bank account.

The measures are effective from 28 January 2019 and is valid until 31 December 2020.