Shenzhen has officially reopened applications for the GBA Individual Income Tax (IIT) subsidy for 2024, a significant move aimed at attracting and retaining top talent in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Shenzhen Finance Bureau, together with three other departments, has released updated guidelines under the "Guidelines on the Application of IIT Subsidies by Overseas High-End and Urgently-Needed Talents for the 2023 Tax Year" (referred to as the "Shenzhen Guidelines"). This year’s guidelines mark the start of a new application cycle, offering renewed opportunities for eligible individuals and employers to benefit from the subsidy programme.
The Shenzhen Finance Bureau, alongside three other departments, has released the "Guidelines on the Application of IIT Subsidies by Overseas High-End and Urgently-Needed Talents for the 2023 Tax Year" (referred to as the "Shenzhen Guidelines"). This marks the beginning of the GBA IIT subsidy application process for this year.
Starting May 15, 2024, Shenzhen will accept individual applications for the subsidy. The deadline for both individual and employer-based applications is June 15, 2024. Applicants must submit their documentation through the designated system before this deadline.
This article provides details on the eligibility criteria, calculation, and application procedures for the GBA IIT subsidy in Shenzhen.
Eligibility Criteria for the GBA IIT Subsidy in Shenzhen
Identity Requirements To qualify, applicants must meet one of the following identity conditions:
Permanent residents of Hong Kong, Taiwan, or Macao.
Hong Kong residents eligible under the Hong Kong Immigration Scheme (gifted, professionals, and entrepreneurs).
Foreign nationals.
Returning overseas students with long-term foreign residency rights.
Overseas Chinese.
The validity of these identity documents must cover the entire tax year.
Employment Conditions Applicants must work in Shenzhen and meet one of these conditions:
Signed a labour (employment) contract with a Shenzhen employer.
Dispatched by a foreign employer, with a dispatch contract between the foreign employer and a Shenzhen unit.
Provides independent personal services with a service contract with a Shenzhen tax-paying entity.
Applicants must also have paid individual income tax in Shenzhen for at least 90 days within the tax year.
Qualifications Applicants should meet the standards for in-demand or high-end talent.
High-end talents include those who:
Are included in major talent projects at the national, provincial, or municipal level.
Are recognised as Overseas High-Level Talent by national, provincial, or municipal authorities.
Hold a “Youyue Talent Card” from Guangdong Province or a “Pengcheng Youcai Card” from Shenzhen.
Hold a Class A foreigner’s work permit (excluding those based solely on average income criteria).
Have a “Confirmation Letter for Foreign High-End Talents” or similar.
Relevant fields or industries include:
Technology and innovation, high-tech enterprises, and key development industries.
Philosophy and social sciences, including research institutions and CCP-affiliated colleges.
Tax Payment Requirements Applicants must:
Have paid taxes in Shenzhen exceeding the estimated tax amount, calculated according to Hong Kong Tax Law.
Authorise the tax authority to verify tax information from the tax department.
Ethical Integrity Requirements Applicants must:
Have no major tax violations, fraudulent activities, or dishonesty in the past five years.
Not be under criminal investigation or listed for serious dishonesty.
Note: Applicants receiving talent awards or subsidies in 2023 must deduct these amounts from their GBA IIT subsidy. They may also choose only one preferential tax treatment.
Employer Eligibility
Employers must:
Be legally registered in Shenzhen.
Have no major tax violations or irregularities in the past five years.
Possess relevant qualifications, such as the HNTE certificate, valid for the application year.
Subsidy Calculation
The GBA IIT subsidy is calculated as follows:
GBA IIT Subsidy Amount = Amount of IIT Already Paid−Estimated Tax Amount {GBA IIT Subsidy Amount} = {Amount of IIT Already Paid} - {Estimated Tax Amount} GBA IIT Subsidy Amount = Amount of IIT Already Paid − Estimated Tax Amount
The "Amount of IIT Already Paid" includes various income types, while the "Estimated Tax Amount" is calculated at a rate of 15% of taxable income. The subsidy amount is capped at RMB 5 million (approx. US$690,000).
Application Process
For Individual Taxpayers
Register on the Guangdong Province Unified Identity Authentication Platform.
Submit the application between May 15 and June 15, 2024, via the Guangdong Government Service Network.
For Employers
Review and submit the applicant’s information and materials through the designated system before June 15, 2024.
Review and Confirmation
The authority will review applications, request corrections if necessary, and determine subsidy amounts.
Confirm annual tax data via the declaration system.
Subsidy Distribution
Funds will be transferred to the applicant’s designated financial account following the final determination.
Extension of GBA IIT Subsidy
The GBA IIT subsidy has been extended until December 31, 2027, as per the Ministry of Finance’s circular issued on August 25, 2023.
The continuation of the GBA IIT subsidy reflects the Chinese government’s efforts to attract foreign talent and investment, addressing concerns about talent availability.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.
Talk to an expert
Schedule a 30-mins complimentary, no-obligation call to see how Woodburn can help you. Book a call with our Head of Business Advisory - Kristina Koehler-Coluccia.
Topics we can advise on include:
Company Registration
Cloud Accounting & Financial Reporting
Cloud Payroll Services
Tax & Audit Services
Recruitment
Employer-of-Record
Visa Application
Trademark Registration
Switch to Woodburn
Partner with Woodburn (cross referral)
Our calls are automatically scheduled via Zoom - or via Teams, WeChat or WhatsApp upon direct request.
Our advisory calls are available from Monday-Friday from 8am to 5pm CEST and Wednesday until 9pm CEST.