Tax preferential policy for HK residents in HTCZ

The finance bureau and the taxation bureau of Shenzhen have jointly issued measures to implement a personal income tax preferential policy for Hong Kong residents in the Shenzhen park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone (HTCZ). The policy specifies that for Hong Kong residents working in the Shenzhen park, the portion of personal income tax exceeding that in Hong Kong shall be exempted.

This policy aims to achieve a convergence of tax burdens for Hong Kong residents, attract more individuals to the HTCZ for entrepreneurship and employment, and foster economic development in the area. The primary beneficiaries of this policy are Hong Kong residents working in the HTCZ Shenzhen park. Various incomes derived from the Shenzhen park, including wages, labor remuneration, royalties, franchise royalties, business income, and talent subsidy income from talent projects or programs at or above the district-level government in Futian District, Shenzhen, qualify for the specified preferential treatment.

Qualified individuals under this policy must calculate and apply for individual income tax reductions when settling their annual tax obligations. The calculated reductions, based on different types of income, are then submitted to the competent tax authority, the Futian District Taxation Bureau, for tax refund processing. Guidance on the application process, submission requirements, deadlines, necessary documentation, and procedures is clearly outlined in the declaration guidelines published by the Futian District Taxation Bureau.

For eligible Hong Kong residents earning income from the Shenzhen park, the portion of their personal income tax exceeding that in Hong Kong will be exempted from taxation. 

Qualified individuals under the policy must calculate and apply for individual income tax reductions when settling their annual tax obligations. The calculated reductions, based on different types of income, are then submitted to the competent tax authority, the Futian District taxation bureau, for tax refund processing. Guidance on the application process, submission requirements, deadlines, necessary documentation, and procedures is clearly outlined in the declaration guidelines published by the Futian District taxation bureau.

However, Hong Kong residents can only select one benefit between the tax incentives for Hong Kong residents in the HTCZ Shenzhen park and the tax incentives for overseas high-end talents and scarce talents in the Guangdong-Hong Kong-Macao Greater Bay Area during the same tax year. They are not eligible to enjoy both benefits simultaneously.