Shenzhen Qianhai to Attract High-Level Overseas Talents and Professionals

Update time:2016-01-11  source:

In the Provisional Regulations on Individual Income Tax Subsidies for Overseas High-Level Talents and Professionals in Short Supply of Qianhai released by Shenzhen Qianhai Administration Bureau recently, the government vowed to provide an alluring 15% individual income tax cut for all overseas high-level talents and professionals in short supply identified by Qianhai Administration Bureau, with no upper limit on the number of talents to enjoy such favorable conditions. 

According to the regulations, for overseas high-level talents and professionals in short supply engaged in preferential sectors in Qianhai, if their individual income tax for job wages & salaries exceed 15% of taxable income, Shenzhen government will pay for the balance, which will be exempt from personal income tax. The regulations, applicable to wage and salary incomes on which progressive tax rate applies, will not affect lump-sum payment or contingent income of which 20% goes to tax revenue.

To support the tax subsidies, Qianhai Administration Bureau also issued Provisional Regulations on the Identification of Overseas High-Level Talents and Professionals in Short Supply of Qianhai, which set the following standards: to be identified as an overseas talent, the person should work in one of the four key sectors in Qianhai; the company or institution that hires the talent should be registered, founded or do business in Qianhai, and it shall pay personal income tax pursuant to the law.

Qu Jian, vice president of Shenzhen Petrochemical Exchange, one of the enterprises that have set up branch in Qianhai, holds that lowered income tax brought by preferential policies will surely attract overseas talents to work in Qianhai and lay a good foundation for the construction of a modern service industry. Ding Song, director of Tourism and Real Estate Research Center of Shenzhen Development Institute, believes that the reduction of the tax policy will become one of Shenzhen's effective tools for positioning, reforming Special Administrative Region as well as attracting quality businesses, for only by taking the lead in tax cuts and reforms can it attract large financial institutions and modern service providers to Qianhai, carry out industry experiments, and build a platform for internationalization of RMB.

Besides the favorable policy for individuals, as head of Qianhai Administration Bureau Zheng Hongjie revealed days ago, Qianhai Industry Access Directory and Corporate Tax Incentives Directory will also be released before the Lunar New Year, offering qualified enterprises with a 15% discount in corporate income tax. In addition, the year 2013 will also witness the official establishment of the Shenzhen-Hong Kong Talent Recruitment Alliance, which will promote the promulgation of policies regarding mutual recognition of professional qualification, collection, payment and return of individual income tax, as well as personnel exchanges.