Q&A: How to Apply for the GBA IIT Subsidy in Dongguan City

Dongguan has set the deadline for applying to the Greater Bay Area Individual Income Tax Subsidy (GBA IIT subsidy) for tax years 2020-2022. Dongguan’s GBA IIT subsidy applications will be accepted from November 15 to December 25, 2023, with the application system closing at midnight on December 25, 2023.

Dongguan has announced the deadline for the application of Greater Bay Area Individual Income Tax Subsidy (GBA IIT subsidy) for the tax years 2021 and 2022, as well as the retrospective application of the IIT subsidy for the tax year 2020.  According to the announcement, the acceptance period for the GBA IIT subsidy application in Dongguan this year is from November 15, 2023, to December 25, 2023. The system for accepting the application will close at 24:00 on December 25, 2023.

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Earlier on November 10, 2023, the city issued its renewed 2023 measures for the implementation of the GBA IIT policy.

In this article, we summarize the most frequently asked questions regarding the GBA IIT subsidy application in Dongguan City.

Who can apply for the GBA IIT subsidy in Dongguan?

According to the recent announcement and the 2023 measures of Dongguan for the implementation of the GBA IIT policy, foreign talents need to satisfy the following requirements in order to be eligible for the GBA IIT subsidy in Dongguan:

1. Identity requirements – the applicant should be of any of the following category:

• Foreign nationals;
• Permanent residents of Hong Kong or Macao;
• Residents of Taiwan;
• Hong Kong resident under the Hong Kong’s Entry Schemes for Talents, Professionals and Entrepreneurs; or
• Overseas Chinese & Returning overseas students who have obtained long-term residence abroad.

1. Employment requirement – the applicant should have worked, provided individual service, or done business in Dongguan for over 90 days (This is a new requirement introduced in 2023).
2. Tax requirement – the applicant should have paid tax in Dongguan and the tax paid exceeded 15 percent of the taxable income.
3. Talant requirement – the applicant should be high-end talent with a Type A work permit or talent in urgent need as stipulated in the Key Position List.
4. Company requirement – the company that the applicant belongs to shall engage in industries that are stipulated in the Encouraged List. (This is a new requirement introduced in 2023).
5. Integrity requirement – the applicant and the company where they operate/work should not have any of the following situations within three years prior to the application of the GBA IIT subsidy:
   • Having major tax violations and dishonesty behaviors.
   • Committing dishonest acts such as making false statements and falsely claiming, defrauding, or misappropriating financial funds;
   • Being listed as a person subject to enforcement for breach of trust;
   • Having received criminal punishment; (Only for individuals)
   • Having been restricted from production and business activities, been ordered to close production and business operation, been restricted to engage in certain industries, been descended qualification levels, or been revoked licensing certificates;
   • Being subjected to administrative punishment or a fine of more than RMB 5,000 (for individuals)/RMB 100,000 (for companies); or
   • Being a suspect of a crime that is under judicial investigation. (Only for individuals)

What are the procedures for the GBA IIT subsidy application in Dongguan?

In general, the GBA IIT subsidy application follows the following procedures:

1. Preparation: Applicant shall inquire their IIT information in through the E-tax system and generate a Serial Code.
2. Creating account and submitting required documents for application: Applicant himself or entrusted company or agent to create an account on the designated application platform, fill in the application form, and submit supporting documentation.
3. First review and examination at the town level:  The human resources and social security bureau at the industrial park/ town level shall conduct the first review and examination of the application materials. During the review, the bureau in charge will also give comments on the application material and require amendment. Therefore, it is advised to start the application process as early as possible to leave enough time for revision or even resubmission.
4. Secondary review and examination at the city level: The human resources and social security bureau at the city level (i.e., Dongguan City) shall conduct secondary review of the application materials.
5. Joint review by multiple bureaus: The Municipal Finance Bureau, the Municipal Tax Bureau, the Municipal Market Regulatory Bureau, the Municipal Public Security Bureau, the Municipal Development and Reform Bureau, the Municipal Industrial Information Bureau, the Municipal Credit Office, the Municipal Intermediate People’s Court, the Municipal Procuratorate, and other relevant departments shall assist in the examination to confirm whether the applicant or the company fall under any circumstance that is prohibited from applying the GBA IIT subsidy.
6. Approval: The Talent Leading Group of the Municipal Party Committee shall examine and approve the application.
7. Grant of subsidies: The money will be transferred to the bank account opened in mainland China by the applicant.

What is the deadline for this year’s GBA IIT subsidy application in Dongguan?

The deadline for this year’s GBA IIT subsidy application is 24:00 December 25, 2023, after which the system for accepting the application will close.

What preparation should individuals make for the GBA IIT subsidy application in Dongguan?

If you are a resident taxpayer, you should have completed the annual IIT settlement procedures for corresponding years.

To be able to make the annual IIT settlement, foreigners need to obtain a register code from the local tax bureau in charge, by physically visiting the local tax bureau and submitting the required documents for real-name authentication. Alternatively, they can entrust their employer to obtain the register code on their behalf.

After obtaining this register code, the individual can register on the IIT app (个人所得税app) or the Online Tax Bureau for Natural Persons (e-tax system, 自然人电子税务局) and log in to obtain the Taxpayer Identification Number and Serial Number.

Will the subsidy be given to the company or the foreign individual?

The GBA IIT subsidy will be directly paid to the bank accounts of the foreign individuals, rather than through companies. The bank account of an individual shall be Category I bank account (A standard bank account category that has the most complete features, which can be used to access to cash, high-value transactions, or investment) registered in China, and the bank information shall be consistent with the information registered with the tax authority.

Should inconsistencies exist, the applicant should make due explanations to relevant bureaus in charge.

I worked for two companies during the year of the application and changed positions twice. What kind of materials shall I provide?

If there are two companies involved, the supporting documents of both companies, including business license, work permit, organization chart, employment certificate, and commitment letter, etc., shall be provided.

If your position has changed (e.g., the information in the work permit or labor contract is different from that in the current ones), you can directly indicate the position change in detail organized by time period on the employment certificate. If labor contract is uploaded to the online application system instead of employment certificate, an explanation of the position change should be supplemented.

I only obtained Tier A Talents Certificate at the end of the application year. Can I apply for this GBA IIT subsidy in Dongguan?

No. The eligible applicants for the GBA IIT subsidy must have worked over 90 days in Dongguan after obtaining the Tier A talent card in the year of application. For examples, if a foreign talent wants to apply the GBA IITsubsidyin Dongguan for the year of 2022, then he/she must have worked in Dongguan for over 90 days after obtaining the Tier A talent card.

The organization chart of our company is written in a foreign language. Are there any special requirements for the organization chart in applying for the GBA IIT subsidy in Dongguan?

The organization chart should be in both Chinese and English/other foreign language. It is suggested to circle out the position of the applicant in the organization chart. The position marked on the organization chart should be consistent with the position given in the application form and that on the labor contract or foreigner’s work permit. Should there be any inconsistences, an additional explanation shall be supplemented.

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