The Greater Bay Area IIT Subsidy for 2026 Kickstarts in Shenzhen

The GBA IIT subsidy program for foreign talent in Shenzhen officially opened on January 1, 2026. Eligible overseas high-end and in-demand professionals may apply for a financial rebate on the portion of IIT paid that exceeds 15 percent of their taxable income, with the application deadline set for March 31, 2026. Early preparation, complete documentation, and timely submission are key to a successful application.

On January 4, 2026, the Shenzhen Municipal Finance Bureau released its official notice on the 2026 application of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) Individual Income Tax (IIT) subsidy.

Find Business Support

We help globally mobile talent with individual income tax planning, tax residency determination, and annual tax filing requirements.

Under the policy, eligible overseas talent working within Shenzhen’s administrative boundaries, including highend and in-demand professionals, may apply for a financial subsidy to offset the portion of IIT paid in Shenzhen that exceeds 15 percent of their taxable income for the 2025 tax year. 

The application window runs from January 1 to March 31, 2026. 

Importantly, individuals who missed applying for the GBA IIT subsidy for the 2024 tax year are given a second chance: late applications for 2024 may be submitted together with the 2025 application during this period. 

In this article, we outline who is eligible to apply, the required documents, the application procedures, and answers to frequently asked questions.

Who can apply? 

To be eligible for the GBA IIT subsidy application in Shenzhen, individual taxpayers must fulfill all the conditions related to their identity, employment, qualifications, tax payment, and ethical integrity. 

Identity

The individual taxpayers should meet one of the following identity conditions: 

• The individual taxpayer is a permanent resident of Hong Kong, Taiwan, or Macao;
• The individual taxpayer is a Hong Kong resident who is eligible for the Hong Kong Immigration Scheme (gifted, professionals, and entrepreneurs);
• The individual taxpayer is a foreign national;
• The individual taxpayer is a returning overseas student with long-term foreign residency rights; or
• The individual taxpayer is an overseas Chinese. 

The validity of the above identity documents should extend throughout the tax year (January 1 to December 31). A change in identity status mid-year may affect the applicant’s eligibility from the following month. If an individual acquires eligible status partway through the tax year, the subsidy becomes available starting the month after the change. Conversely, if the person loses eligibility midyear, the subsidy stops from the month following the change. 

Employment conditions 

The individual taxpayer must work in Shenzhen and meet one of the following conditions: 

• Be employed in technology, key industries, or the humanities/social sciences within Shenzhen;
• Have signed a valid labor, dispatch, or service contract with a Shenzhen-registered company or institution;
• Have physically worked in Shenzhen for over 90 days in 2025 (excluding 90 days); and 
• Have paid individual income tax in Shenzhen for 2025. 

Notably, at the time of application high‑end talent applicants must still be working in Shenzhen and in‑demand talent applicants must still be employed in a designated in‑demand position in Shenzhen. 

Ethical integrity requirements 

The individual taxpayer must abide by laws and regulations, research ethics, and research integrity. Until the date of application, the individual taxpayer has not been listed as a subject of serious dishonesty. 

Qualifications 

The individual taxpayer should meet the standards set for in-demand talent or high-end talent. 

High-end talents refer to those who satisfy one of the following conditions and are engaged in certain fields or industries: 

• Inclusion in major talent projects at the national, provincial, or municipal level.
• Recognition as Overseas High-Level Talent by the national, provincial, or municipal authorities.
• Holders of the “Youyue (优粤)Talent Card” issued by Guangdong Province.
• Holders of the “Pengcheng Youcai (优才) Card” issued by Shenzhen.
• Holders of Class A foreigner’s work permit” (excluding those who obtained Class A permits based on the criterion of average income not being less than six times the previous year’s average social wage in Shenzhen).
• Holders of the “Confirmation Letter for Foreign High-End Talents,” “Confirmation Letter for High-Level Talent from Overseas, Hong Kong, or Macao” issued by Guangdong Province. 

Relevant fields or industries include:

*There are more detailed explanations about the scope of relevant fields and industries in the Shenzhen Guideline. 

In-demand talent refers to overseas scientific research talents, technical skills backbone, and senior management talents working in fields in the field of science and technology innovation, key development industries, or philosophy and social sciences in Shenzhen. The fields and industry scopes are the same as those for high-end talents. 

How much can you get? 

Under the Shenzhen notice, the GBA IIT subsidy available to an eligible individual is calculated as the difference between the IIT actually paid in Shenzhen and the amount calculated at a 15 percent tax rate. 

GBA IIT SUBSIDY AMOUNT IN SHENZHEN = AMOUNT OF IIT ALREADY PAID – ESTIMATED TAX AMOUNT 

IIT already paid 

The “IIT already paid” refers to individual income tax paid in Shenzhen during the 2025 tax year under the PRC IIT Law, arising from the following income categories: 

• Wages and salaries;
• Remuneration for labor services;
• Author’s remuneration;
• Royalties;
• Business income; and
• Subsidy income received from participation in officially recognized talent programs or projects. 

Estimated tax amount 

For the 2025 tax year, the estimated tax amount is calculated using the standard method adopted under the GBA policy: 

ESTIMATED TAX AMOUNT = APPLICANT’S TAXABLE INCOME × 15%. 

Subsidy cap and tax treatment 

The maximum subsidy amount is capped at RMB 5 million (approximately US$690,000) per taxpayer per tax year. The GBA IIT subsidy is exempt from further IIT liabilities. 

Interaction with other talent subsidies 

If an overseas talent recipient has already received Shenzhenlevel or districtlevel talent awards or subsidies during the same tax year – including but not limited to: highlevel talent subsidies, “Peacock Plan” positionbased awards, or municipal global talent aggregation, special appointment, or talent cultivation program incentives – the actual GBA IIT subsidy payable will be reduced by the amount of such incentives already received. 

Moreover, where an overseas talent individual qualifies for multiple IIT preferential policies, including: 

• The GBA IIT subsidy
• The Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone IIT incentive
• The Hetao Shenzhen–Hong Kong Science and Technology Innovation Cooperation Zone (Shenzhen Park) IIT incentive 

The applicant may choose only one policy to apply and may not enjoy multiple IIT preferential treatments simultaneously. 

How to apply

For individual taxpayers whose income in Shenzhen includes wages and salaries, the GBA IIT subsidy application has to be made through the employer. Nevertheless, if the applicant only has income from personal services in Shenzhen, then they can apply for the subsidy directly without involving the employer. The subsidy application window is open from January 1 to March 31, 2026. 

Step 1: Register online 

To initiate the application, the applicant and the employer must register as users on the Guangdong Province Unified Identity Authentication Platform, and individual applicants need to undergo real-name verification. 

Step 2: Individual application 

From January 1 to March 31, 2026, the individual applicant should search for “Shenzhen High-end and Shortage Overseas Talent Individual Income Tax Subsidy” (深圳市境外高端人才和紧缺人才个人所得税财政补贴) on the Guangdong Government Service Network, submit the application for the GBA IIT subsidy, provide relevant proof materials, make a written commitment, and submit it for review by their work unit. 

Applicants need to prepare and upload the following: 

• Identity documents (passport, visa, Hong Kong/Macau/Taiwan permits, etc.);
• Proof of talent status (certificates, confirmation letters, etc.);
• Employment contract or dispatch agreement;
• Proof of income tax paid in Shenzhen;
• Bank account information (a mainland China bank account in the applicant’s name); and
• Signed commitment letter (template provided in the official guide). 

Step 3: Employer review and submission 

The employer must review the applicant’s information and materials, make a written statement and commitment, and submit the application in the designated system before March 31, 2026. 

If it’s the first time for the employer to submit such applications, the employer must also select the appropriate industry category for the organization and submit it for review by the relevant industry authority. 

• If employed full-time, the Shenzhen employer must verify the applicant’s position, job nature, and contract status; and
• If working on a freelance or service contract basis, the applicant may apply without employer submission – unless tax payments include salary income, in which case, employer involvement is required. 

Step 4: Acceptance, preliminary review, and centralized review from the authority 

The accepting authority will decide whether to accept or reject the application within five working days from the date of receipt. If the application materials are incomplete, the authority will notify the applicant or the applying entity to make corrections. The applicant must provide the corrected materials within seven working days; if the corrections are not made within this period, the authority will not accept the application and will inform the applicant or the applying entity. 

Following that, the accepting authority will conduct a preliminary review and then a centralized review to form a list of high-end talents and in-demand talents who can enjoy the GBA IIT subsidy policy. 

Step 5: Confirmation of annual tax data 

After initial approval, the accepting authority will notify the applicant to log in to the declaration system within five working days to obtain and confirm the annual tax data and submit it to the accepting authority for subsidy calculation.

Find Business Support

Our team of tax accountants, lawyers, and former tax officials help businesses reduce risks and optimize tax outcomes in Asia.

The applicant can log in to the official e-tax website in advance, go to the “Special Applications” – “Talent Subsidy (Reward) IIT Data” query page, query the tax data by year, and authorize it to be sent to the accepting authority. 

If an applicant is included in the proposed subsidy list, the accepting authority will calculate the subsidy amount. If the calculated amount differs from the amount applied for, the applicant must be informed promptly. 

The applicant’s identification information must be consistent with the information used when declaring and paying IIT. If the applicant has registered for tax using different IDs (such as the passport or work permit), they must consolidate their tax records with the tax authorities before applying and submit the additional identification documents. 

Step 6: Dispute resolution 

If the applicant has objections to the preliminary review opinion, they must submit an appeal within seven days from the date of notification. Late submissions will not be accepted. The accepting authority must conduct a review within 15 days and inform the applicant of the result.

Related Reading

Understanding Permanent Establishment in China – A Guide for Foreign Companies

If the applicant has objections to the subsidy amount, they must submit a request for recalculation to the accepting authority within 15 days from the date of notification. The authority must complete the recalculation within 60 days. If there is a discrepancy after recalculation, the amount should be adjusted accordingly, and the applicant must be informed. If the applicant does not raise further objections to the subsidy amount within 15 days of being notified, the accepting authority will proceed with subsidy disbursement according to the standard process. 

Step 7: Receive subsidy 

After the final determination of the distribution list and subsidy amount, the accepting authority will directly transfer the funds to the applicant’s designated financial social security card account or other personal bank account through the centralized payment system of the fiscal treasury. 

• Previous Article US-China Relations in the Trump 2.0 Era: A Timeline
• Next Article