Income taxes to be cut for overseas top talents

Writer:   |  Editor: Jane Chen  |  From: Shenzhen Daily  |  Updated: 2019-08-06

Overseas high-end science and technology talents working in Shenzhen will be able to enjoy favorable personal income tax deductions from the municipal government, the Southern Metropolis Daily reported May 25, citing Vice Mayor Wang Lixin.

Under the preferential policy, the individual incomes of overseas high-level science and technology talents will be taxed at 15 percent. For instance, talents with an annual salary of 1 million yuan (US$144,933) will only need to pay 150,000 yuan in income taxes, a reduction of 300,000 yuan compared with the sum taxed at the original rate.

Shenzhen will also invest more than 4 billion yuan in basic scientific research this year, which is over one-third of the municipal government's fiscal expenditure on scientific R&D, according to Wang, who made the remarks at the 2019 Future Summit held in Shenzhen on Saturday.

In 2018, Shenzhen's R&D investment accounted for 4.2 percent of the city's GDP, a proportion that is equivalent to that of Israel, according to Wang. The city's PCT patent applications have ranked first among China's large and medium-sized cities for 15 years.

Last year, the added value of emerging industries saw double-digit growth. The number of new high-tech enterprises has reached more than 3,000, and the total number of high-tech enterprises in the city has reached 144,000, ranking second in the country.

Nevertheless, Shenzhen has also faced such challenges as a high-end talent shortage, inadequate innovation ability and lack of major innovation platforms, said Wang in his speech.

By the end of 2018, the total number of full-time academicians in Shenzhen was 41, and the total number of high-level talents was 12,611, which indicated a big gap between Shenzhen and cities like Beijing and Shanghai. For instance, there was a shortage of leading talents in the field of artificial intelligence, especially talents and teams that could provide core technologies and solutions for industrial applications.

"In 2019, Shenzhen's R&D budget is 12.3 billion yuan, an increase of 8.41 billion yuan over five years ago, which is an increase of 500 percent. In particular, 4.53 billion yuan is allocated for basic research, accounting for 36.87 percent of the expenditure on scientific R&D," Wang was quoted as saying.

According to Wang, Shenzhen will make an all-out effort to make breakthroughs in core technologies in order to get the upper hand in strategic fields.