2023 Tax Subsidies for High-Level Expats


Now Shenzhen   |   May 21, 2024

Shenzhen Issued Guidelines for Filing Individual Income Tax Fiscal Subsidies for Overseas High-end Talents and Talents in Short Supply for Tax Year 2023 on May 14, 2024.
The application conditions are similar with those of last year. Only procedure and one company pre-condition are changed. Please check the words with red colors which are different with those in 2022.

Details are as below:

I. Applicant should be one of the followings

  1. Permanent residents of Hong Kong and Macau.
  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

  1. The declarant works in Shenzhen and meets one of the following conditions:
    • Having signed a labor (employment) contract with the employer in Shenzhen.
    • Dispatched by an overseas employer, and the overseas employer has signed a dispatch contract with the receiving employer in Shenzhen.
    • Providing independent personal labor services and signing a labor contract with the Shenzhen taxpaying unit.
  2. The declarant has worked in Shenzhen for a total of 90 days in the tax year in which he/she applies for the financial subsidy for individual income tax of overseas high-end talents in short supply.
  3. If the applicant’s employer has changed, and the number of working days in the company that meets the reporting requirements in 2021/2022 has exceeded 90 days, the application can be made through the company, and the company should cooperate.

III. Applicant Qualifications

Overseas High-end Talents

Applicant should be conformed to one of the following conditions, and work in the city’s science and technology innovation, key development industries or philosophy and social sciences:

  • Selected by major talent projects.
  • Overseas high-level talents.
  • Guangdong “人才优粤卡” holders.
  • Holders of the Shenzhen “鹏城优才卡”.
  • 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”).
  • Holders of “Confirmation Letter for Foreign High-level 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”.

    Relevant fields refer to:

    1. Science and technology innovation field;
      • Major innovation platforms at national, provincial or municipal level;
      • Institutions of higher learning, scientific research institutions, medical institutions, public health institutions.
      • High-tech enterprises, “专精特新” enterprises, manufacturing single champion enterprises.
    2. Key Development Industries
      • Strategic emerging industries, future industries.
      • Modern service industry.
    3. Philosophy and social sciences

    Philosophy and social science research institutions, party schools and administrative colleges, party and government departments belonging to the research institutions.

    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
      • A scientific research team member or a mid-level or above manager of a major innovation platform at the national, provincial or municipal level.
      • A 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.
      • 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
      • The Scientific research team members,technical skills backbone and senior management working in strategic emerging industries and future industries.
      • 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.

    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.

    Other Personal Conditions

    1. A declarant shall abide by all relevant laws and regulations as well as scientific research ethics and integrity. As of the date of acceptance by the accepting authority, none of the following shall be true:
      • The declarant has a record of major tax violations, false reporting, fraudulent collections, fraudulent acquisitions, or embezzlement of financial funds; or has records of dishonest conduct such as violations of scientific research ethics or integrity; or bears direct or primary liability for the abovementioned conduct records of a reporting entity within the past 5 years.
      • The declarant is subject to a criminal penalty for a crime within China or under judicial investigation for a suspected crime pending a clear conclusion.
      • The declarant is subject to an administrative penalty which is under execution, has not been lifted, or has not been rectified; or bears direct or primary liability for the abovementioned conduct records of a declaring entity. This is deleted in 2023’s policy.
      • The declarant is listed as an untrustworthy person subject to enforcement or bears direct or primary liability for the reporting entity being listed as an untrustworthy person subject to enforcement.
    2. If the applicant has received talent awards or subsidies in 2023, 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 2023. Last year it was not possible to apply at the same time, but this year it is possible to apply for the difference. (Can’t apply last year ).
    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 tworefunds at the same time.

    Company Basic Conditions

    1. Enterprises and institutions registered in Shenzhen.
    2. Comply with laws and regulations. there shall be no one of the following conditions:
      • There is a record of serious tax violations in the last 5 years.
      • Company is in the business abnormal list.
      • A record of administrative penalties that are being enforced, have not been lifted, or have not been rectified. This is deleted this year.
      • Company is listed in the “blacklist” of Shenzhen public credit. This is deleted this year.
      • Company is in the list of serious dishonest entities on Shenzhen Public Credit Platform.

    The declaring entity shall meet the conditions described in Article 6 “Definition of relevant terms” of this declaration guide(please check the Chinese version for relevant terms), and the relevant qualifications are valid in the corresponding tax year. subject to the list of entities provided and confirmed by the competent authorities of the relevant industrial fields. This is deleted this year.This is big change with last year.

    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 City 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.
    3. “Estimated tax amount” refers to the tax payable calculated in accordance with the Hong Kong tax law on the individual income of a declarer in Shenzhen City. The estimated tax amount for 2020 is calculated according to the standard tax rate method: the estimated tax amount = taxable income of the declarer × 15%.

    The maximum individual income tax subsidy is 5 million RMB.

    Application Time

    From May 15, 2024 to June 15, 2024.

    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. 

    Q&A

    1. What’s the big difference comparing to those of last year?
      • Also can apply for this subsidy difference if you applied for other talent awards subsidies except of Qianhai and Hetao Area tax subsidies.
      • Company is no need in “whitelist” like last year. But the pre-condition to post-approval. The applicant can apply first even the company is not in the white list of last year. Actually similarly with last year, the competent government department must appove your application after your submission, otherwise can’t proceed.
      • Procedure is changed a little bit: the applicant will declare first, then authorize HR Bureau to get IIT data from Tax Bureau.
    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 Hongkongese/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 2023’s tax subsidies if i got my Guangdong “人才优粤卡” in 2024?
      No, can’t apply for year 2023. ‍‍‍‍‍‍‍‍‍‍‍

    Subsidies we got for our customers in last year. 

    Please contact us if you need our professional service.