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Financial Subsidy Application Procedures for Foreign Talents

Posted by: Zhorea Garcia
Category: Tax and Regulations
Foreigners working in the Greater Bay Area may apply for a financial subsidy following the preferential tax policy intended for high-end overseas talents.

The Shenzhen authorities in China have released the application guidelines for the issuance of financial subsidies to high-end overseas talents. The said financial subsidy refers to the tax incentives offered to foreign talents working in the Guangdong-Hong Kong-Macau Greater Bay Area.

Read more from our previous article Foreign Talents in South China Enjoy Tax Incentives

High-end foreign talents will receive preferential tax treatment on their individual income taxes following the implementing procedures. Keep reading!

The financial subsidy equivalent to more than 15 percent taxable income

Eligible overseas applicants and employers (on behalf of their foreign employees) can apply for the subsidy amount which is equivalent to their taxable income beyond 15 percent. This means that the exceeding portion of their taxable income shall be subsidized by the municipal government once a year until December 31, 2023.

Foreign talents must meet certain standards to qualify as a high-end talent or talent in short supply. Hence, they can also continue to enjoy the said preferential tax policy.

Conditions for financial subsidy application (Shenzhen)

Identity of the overseas talent

  • Permanent residents of Hong Kong, Taiwan, and Macau;
  • China Mainland residents who have settled in Hong Kong and Macau;
  • HK residents under the HK Immigration Program for talents, professionals, and entrepreneurs;
  • Overseas students or overseas Chinese who have returned and obtained a long-term residency abroad;
  • Foreign nationals with a permanent residence permit.

The Guangdong provincial government shall conduct identity authentication through its online platform where qualified applicants must register.

Working conditions of the eligible applicant

  • Obtained a labor contract with a Shenzhen employer and currently working in the city;
  • Acquired a dispatched labor contract from the Shenzhen receiving unit if dispatched by an overseas employer;
  • Obtained a labor contract for independent service;
  • Foreign workers with Type A and B permit and has a permanent residency in China;
  • Worked for 90 days in Shenzhen in 2019;
  • A taxpayer in Shenzhen whereas the tax paid is greater than 15 percent;
  • The taxable income of foreign national reaches RMB 500,000 and above.

Qualifications of the applicant

  • National, provincial and municipal major talent project candidates;
  • Overseas high-level talents recognized by the state, province, and city;
  • Obtained the Guangdong “Talent Excellent Guangdong Card”;
  • Foreign workers with Type A and B permit and has a permanent residency in China;
  • Members of a scientific research team or management talents at the national, provincial, or municipal level of major innovation platforms as well as higher education, scientific research institutions, or hospitals;
  • Foreign talents with key and outstanding skills and working for Fortune 500 companies and their branches, large and listed companies, and high-tech or innovation enterprises;
  • Middle-level managers, research team members, and key young talents in major development industries in the nine cities.

Finally, it is also crucial for eligible applicants to be free from any criminal liability or law violations.

Furthermore, those who have already enjoyed the preferential policies below cannot apply for the subsidy in Shenzhen.

  • Shenzhen Industrial Development and Innovation Talent Award
  • Special fund for Shenzhen talent development guidance
  • Shenzhen headquarters corporate talent support funds

When to apply?

The implementing guidelines have been effective in July 2020, however, the online system will be made available by August 1, 2020. Nevertheless, below are needed for the online declaration of the subsidy.

  1. Application Form for Tax Subsidy for Personal Income
  2.  Valid identification
  3.  Labor contract signed by the employer in Shenzhen
  4. Tax payment certificate issued by the tax authority
  5. Commitment to declare personal income tax financial subsidies
  6. A Class I bank settlement account in Mainland China

On the other hand, this application method for Shenzhen may apply to other GBA cities including Guangzhou, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing under normal circumstances. It must be noted, however, that these cities may have different conditions in terms of identifying a high-end and in-shortage foreign talent. Send us an e-mail at [email protected] to get in touch with our Guangdong-based experts for further inquiry.

It is highly advised that qualified foreign talents must prepare their applications as early as possible following the implementing procedures announced by each city.

Contact us

If you want further assistance regarding the calculation and application of your financial subsidy, you may email us or call our local experts based in Guangdong at +86-755-8860-5256 and Hong Kong at +852-3678-9839. Also, visit our tax and accountancy page to see more details of our specialist services.

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Author: Zhorea Garcia

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