Guangzhou has opened application channel access to individual tax income subsidies. From July 1 to August 31, 2021, eligible overseas talents and their employers are able to file their applications through the online service platform of the Guangzhou government.
Applicants should be aware that Guangzhou modified its implementation measures and talent catalogues for the IIT subsidy plan.
Since the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) first rolled out the plan on individual tax income (IIT) incentives for overseas talents in 2019 – nine cities in Guangdong province have processed IIT subsidy applications (first round) between July to August of last year.
This year, Guangzhou kicked off the second round of application for access to IIT subsidies. Starting July 1, 2021 until August 31, 2021, qualified overseas high-end and urgently needed talents working in Guangzhou as well as their employers are able to file applications through the service platform of Guangzhou Municipal Government.
Further, between July 1, 2021 to August 31, 2021, in addition to applying for subsidy for the 2020 tax year, qualified talents are also allowed to re-apply for subsidy for the 2019 tax year. (To be noted, if the application for subsidy for the 2019 tax year is overdue again, it will not be accepted any longer).
Aside from this, applicants should note that Guangzhou has modified its implementation measures and talent catalogues for IIT subsidy plan.
On June 7, 2021, Guangzhou released the Notice on Financial Subsidies for the Implementation of IIT Preferential Policies in the GBA (Shui Cai Gui Zi  No.1) (the English version of the Notice is available here).
The Shui Cai Gui Zi  No.1, effective from January 1, 2021 to December 31, 2023, further refined the lists of subsidized overseas “high-end talents” and “talents in short supply” and detailed the policy implementation rules (you may find the full Catalogue of Overseas High-end Talents in Guangzhou in English here and the Catalogue of Overseas Critically-lacking talents in Guangzhou in English here).
In addition, Guangzhou also published 50 Questions and Answers on Guangzhou’s Administration of Financial Subsidies (you may visit the questions and answers here).
As Guangzhou kicks off its next round of applications to access IIT subsidy, it is expected that other cities in Guangdong province will follow suit. To ensure timely access to the subsidies, it is recommended that enterprises and eligible individuals monitor for regional announcements, make appropriate preparations, and file applications as soon as possible.
China Briefing will keep you updated on the most recent news on GBA IIT subsidy policies. Our parent company, Dezan Shira & Associates, has an experienced team of tax accountants, lawyers, and ex-tax officials based in the GBA who can help with matters related to foreigners’ IIT calculation and subsidy application, as well as derive practical solutions to your human resource arrangement needs in the GBA. Please feel free to email us at China@dezshira.com.
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