Notice on Implementing the Individual Income Tax Preferential Policies in the Guangdong-Hong Kong-Macao Greater Bay Area (Yue Cai Shui [2019] No.2)

22 June 2019

The Department of Finance of Guangdong Province and the Guangdong Provincial Tax Service under the State Taxation Administration issued a Notice on Implementing the Individual Income Tax Preferential Policies in the Guangdong-Hong Kong-Macao Greater Bay Area (“the GBA”) on June 22, 2019. If Hong Kong permanent residents meet the conditions stipulated in the Notice, the Municipal Governments in the GBA will grant subsidies to the residents for the individual income tax paid exceeding 15% of the taxable income. The subsidies are exempt from individual income tax. The Notice was effective from January 1, 2019 and will be trialled for one year.

Abstract

The Department of Finance of Guangdong Province and the Guangdong Provincial Tax Service under the State Taxation Administration issued the “Notice on Implementing the Individual Income Tax Preferential Policies in the Guangdong-Hong Kong-Macao Greater Bay Area” (“the GBA”) on June 22, 2019. If Hong Kong permanent residents meet the conditions stipulated in the Notice, the Municipal Governments in the GBA will grant subsidies to the residents for the individual income tax (“IIT”) paid exceeding 15% of the taxable income. The subsidies are exempt from individual income tax. The Notice was effective from January 1, 2019 and will be trialled for one year.

The IIT paid refers to the amount paid on the following gains/income according to the “Individual Income Tax Law of the People’s Republic of China”:

Basic application criteria

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