2024 Individual Income Tax Subsidies for High-end Expats

Shenzhen on May 29 issued guidelines for filing Individual Income Tax Fiscal Subsidies for Overseas High-end Talents for Tax Year 2024.

Details are as below:

I. Applicant should be one of the followings

1. Permanent residents of Hong Kong and Macao.

2. Hong Kong residents who have obtained Hong Kong Immigration Scheme (Talents, Professionals and Entrepreneurs).

3. Residents of Taiwan.

4. Foreign nationals.

5. Returned overseas students who have obtained long-term residency abroad.

6. Overseas Chinese.

II. Work Conditions

The applicant should meet following conditions:

1. The applicant has worked in the fields of science and technology innovation, key development industries or philosophy and social sciences in Shenzhen during the tax year and 

2. Signing labor contracts, dispatch contracts or labor service contracts with enterprises and other organizations registered in Shenzhen.

3. Work in Shenzhen for more than 90 days (excluding 90 days) in the tax year and pay individual income tax in Shenzhen.

4. Applicants belonging to high-end talents shall still be working in Shenzhen when applying for financial subsidy; applicants belonging to shortage talents shall still be serving in relevant shortage positions in Shenzhen when applying for financial subsidy.

The number of days an applicant works in Shenzhen in the tax year refers to the number of days the applicant actually stays in Shenzhen during the period of working in Shenzhen. If the applicant stays in Shenzhen for less than 24 hours on the same day, the number of working days in Shenzhen shall be calculated to half a day.

III. Applicant Qualifications

1. Overseas High-end Talents

High-end talents are required to work in Shenzhen's major innovation platforms, scientific research institutions, medical institutions, public health institutions, schools, party schools and administrative colleges, or work in Shenzhen's key development industries, and meet one of the following conditions:

(1)Selected for major talent projects in China, Guangdong Province and Shenzhen;

(2) Holders of Guangdong Province “人才优粤卡”;

(3) Holders of Shenzhen “鹏城优才卡”;

(4) Expats holding Class A "Work Permit for Foreigners to Work in China" (except for those who apply for Class A "Work Permit for Foreigners to Work in China" based on the criterion of "the average salary income is not less than 6 times of the average salary income of Shenzhen in the previous year").

(5) Holders of “Confirmation Letter for Foreign High-end Talents”, “Confirmation Letter for Foreign High-level Talents in Guangdong Province” or “Confirmation Letter for High-level Talents from Hong Kong, Macao and Taiwan in Guangdong Province”.

2. Overseas talents in short supply

Overseas scientific research talents, technical skill backbones and senior management talents working in the fields of science and technology innovation, key development industries and philosophy and social sciences in the city.

(1) In the field of science and technology innovation

① A scientific research team member or a mid-level or above manager of a major innovation platform at the national, provincial or municipal level.

②A research and technical team member or mid-level or above manager at a university, scientific research institution, hospital, or public health institution; or a team member who undertakes research into a major vertical topic at or above the municipal level, a leader of a key discipline or key specialty at or above the municipal level, or a backbone talent in the field of medical and health technology.

③ Research team members, technical skill backbones and senior managers of high-tech enterprises, "专精特新" enterprises, and manufacturing single champion enterprises.

(2) Key Development Industries

① The Scientific research team members,technical skills backbone and senior management working in strategic emerging industries and future industries.

② Research team members, technical skills and senior managers in the modern service industry.

(3) Philosophy and social science fields

Persons engaged in research or teaching in the philosophical and social sciences in higher education institutions, philosophical and social science research institutes, party schools and administrative colleges, party and government departments.

The key development industries in Shenzhen include:

(1) High-tech enterprises, specialized and special new enterprises, manufacturing single champion enterprises, gazelle enterprises, unicorn enterprises, international industry and standard organizations;

(2) Strategic emerging industries and future industries;

(3) Modern service industry.

IV. Income and Tax Standards

1. The applicant must pay IIT in Shenzhen according to the law, and the paid IIT exceeds the tax amount computed at 15% of his/her taxable income.

2. Must authorize and agree to the authority to inquire about taxation information with relevant departments（Login in Tax Bureau's website to do).

V. Other Personal Conditions

1. Applicants should comply with laws and regulations, research ethics and research integrity, pay taxes in accordance with the law, and not be included in the list of subjects with serious breach of trust at the time of application.

2. If the applicant has received talent awards or subsidies for 2024, such as Shenzhen and districts' high-level talent award subsidies, "Pengcheng Peacock Plan" special post awards, the actual amount of subsidies should be deducted from the amount of talent awards or subsidies already issued in 2024. Last year it was not possible to apply at the same time, but this year it is possible to apply for the difference. 

3. If a declarant is eligible for the Individual Income Tax Refund for High-end Talents and Talents in Short Supply in Guangdong, Hong Kong and Macao Bay Area and Qianhai and Hetao area, he/she may choose to enjoy one of the refunds, but may not enjoy the two refunds at the same time.

VI. Subsidies Standards

Financial subsidy amount = Paid IIT in the tax year-Taxable income*15%.

1. "Tax amount paid" refers to the amount of individual income tax paid in Shenzhen in accordance with the Individual Income Tax Law of the People's Republic of China on the following income: (1) wages and salaries; (2) labor service remuneration; (3) author's remuneration; (4) royalties; (5) operating income; and (6) subsidy from admission to a talent project or program.

2. If final settlement is required under the tax law, the amount of individual income tax paid shall be subject to the actual tax paid for the whole year after the final settlement and tax refund are handled in the following year. If final settlement is not required under the tax law, the amount of individual income tax paid shall be subject to the actual tax paid for the whole year after the tax refund is made.

The maximum individual income tax subsidy is 5 million CNY.

VII. Application Time

From June 1 to July 31, 2025.

VIII. Processing Time

The authority shall make a preliminary examination opinion within 30 days from the date of acceptance. 

But may take 3-6 months to get the subsidies finally. 

Ⅸ. Q&A

1. What's the difference comparing to those of last year?

(1)"Higher education institutions" is changed to "schools". Means that qualified applicants can apply if working in a primary school/middle school/high school/university or other higher education institution.

(2) Adding two other new types of enterprises：Gazelles and Unicorns.

2. Can I apply if I am a freelancer and provide service to a Shenzhen company?

Can apply if you are a foreigner and sign a service agreement with a Shenzhen company and meet other conditions.

3.Can I apply if my employer doesn’t cooperate to submit the application?

Can’t if you are an employee working in a Shenzhen company.

4. Can I apply if I am a Hongkonger/Taiwanese without high-level talent certificate, but I work as executive in a Shenzhen's key development industries company?

Yes, can apply.

5.Can I apply for 2024's tax subsidies if i got my Guangdong "人才优粤卡" in 2025?

No, but can apply for 2025's.

(Source: ZiX Consulting)