China Taxation
Guidance on Application for IIT Subsidy for Overseas Talents for 2020 in Shenzhen
A Notice on Guidance on Application for IIT Subsidy for Overseas Talents for 2020 in Shenzhen was jointly issued by Shenzhen Administration of Human Resource and Social Security, Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, Shenzhen Taxation Administration on 6 August 2021, stating that eligible applicants can apply for IIT subsidy in the name of individual or enterprise from 16 August 2021. Please refer to the following content for more detailed information:
- Requirements for applicants
(1)
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Requirements for applicants?identity
- Permanent residents of Hongkong or Macao. Based on the permanent identity card of Hongkong or Macao and the Mainland Travel Permit for Hongkong or Macao residents.
- Mainland residents who have settled in Hongkong or Macao and have cancelled the household registration. Based on the identity card of Hongkong or Macao and the Mainland Travel Permit for Hongkong or Macao residents.
- Hongkong residents (excluding dependants) who have obtained the Hongkong immigration scheme for talents, professionals and entrepreneurs. Based on Hongkong identity card, Mainland identity card and relevant immigration certificate issued by Hongkong Immigration Department.
- Taiwan residents. Based on Mainland Travel Permit for Taiwan residents.
- Foreigners. Based on the passport or foreigner’s permanent residence permit.
- Returnees who have obtained long-term residence permit of foreign countries. Based on Chinese passport, mainland identity card, long-term or permanent residence permit of foreign countries and academic degree certified by Chinese Service Center for Scholarly Exchange (CSCSE).
- Overseas Chinese. Based on Chinese passport, mainland identity card, residence permit of foreign countries and entry/exit record of China.
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(2)
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Requirements for applicants?working conditions
- Applicants work in Shenzhen and meets one of the following conditions at the same time:
(i) Applicants have signed employment contract with enterprises in Shenzhen.
(ii) Applicants are dispatched by an overseas employer who have signed dispatch contract with enterprise in Shenzhen.
(iii) Applicants provide independent individual services and sign labor contract with taxpayer in Shenzhen.
- The accumulated working days in Shenzhen for applicant are no less than 90 in 2020.
- If employers changed during 2020, applicants shall apply for the subsidy through eligible employer with which they have worked for no less than 90 days.
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(3)
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Qualifications of applicants
Applicants shall meet one of the following conditions. For whom in accordance with the following article a to d, they shall apply for the subsidy personally. For whom in accordance with the following article e to h, applicants shall apply for the subsidy in the name of their employers.
- Selected for national, provincial and municipal major talent projects.
- Overseas high-level talents recognized by Chinese government, provincial or municipal government.
- Holders of “You Yue Card?from the Guangdong provincial government.
- Talents who have foereigner’s work permit in China (class A or B) or Comfirmation Letter for High Level Foreign Talents.
- Members of scientific research teams and middle-level or above managers working for national, provincial or municipal major innovation platforms.
- Members of scientific research teams, administrators of middle-level or above who work in universities, research institutions, hospitals and public health institutions, or members who undertake major research projects of municipal level or above.
- Adminitrators of middle-level or above, scientific research team members, key members and outstanding young talents who work in headquarter enterprises, world top 500 enterprises and their branches, high-tech enterprises, large and important enterprises, listed enterprises and ‘special and new?enterprises.
- Adminitrators of middle-level or above, scientific research team members, key members and outstanding young talents who work in key industries and key development areas in Shenzhen.
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(4)
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Tax requirements for the applicant
- The applicant shall be a law-abiding taxpayer whose paid-tax amount is greater than the estimated amount (please refer to the following article 3 for detailed calculation).
- The applicant shall authorize the accepting authorities to inquire the tax payemnt information from relevant government departments.
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(5)
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Other conditions for the applicant
- Applicants shall comply with laws and regulations, scientific ethics and integrity. Upon the acceptance date by the accetpting authority, applicants shall not be in any of the following circumstances:
(i) In the past five years, the applicant has records of major tax violation, false declaration, false claim, fraud, misappropriation of financial funds, dishonest behaviors such as breakage of scientific ethics and integrity, or directly or mainly responsible for the above-mentioned behavior.
(ii) Applicants who have been subjected to criminal punishment for crimes in China or suspected of crimes under judicial investigation and no clear conclusion have been made.
(iii) Applicants who have records of administrative punishment being executed, not relieved or not rectified, or directly or mainly responsible for the above-mentioned behavior.
(iv) Applicants being listed as trust-breaking person who subject to enforcement, or directly or mainly responsible for the listed trust-breaking employers who subject to enforcement.
(v) Applicants who have been listed as serious trust-breaking entities in Shenzhen public credit platform.
- Applicants not enjoyed one of the following rewards or subsidies that stipulated in preferential policies for talents in 2021:
(i) Shenzhen Talent Award for Industrial Development and Innovation
(ii) Special fund for talent development and guidance in Qianhai Shenzhen-Hongkong Cooperation Zone of Modern Service Industry.
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- Requirements for enterprise applicants
(1)
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Basic requirments for enterprise applicants
- Applicants shall be enterprises or organizations legally registered in Shenzhen.
- Applicants shall comply with laws and regulations. Upon the acceptance date by the accetpting authority, applicants shall not be in any of the following circumstances:
(i) In the past five years, the applicant has record of not paying tax in accordance with law .
(ii) Applicants who are in the list of abnormal enterprises.
(iii) Applicants who have records of administrative punishment being executed, not relived or not rectified.
(iv) Applicants being listed as trust-breaking person who subject to enforcement.
(v) Applicants who have been listed as serious trust-breaking entities in Shenzhen public credit platform.
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(2)
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Other requirments for enterprise applicants
The criterias for eligible enterprise applicants are based on the list approved or recommended by national ministries and commissions, Guangdong provincial government and relevant government departments in Shenzhen, applicants can find the list by logging in the website of Shenzhen Human Resource and Social Security Bureau.
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- Calculation of IIT for subsidy
(1)
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The amount of subsidy that the applicants can apply shall be calculated by the tax declared and paid in Shenzhen in the tax year of 2020, minus the tax computation, and the subsidy is exempt from IIT.
*‘Tax declared and paid?refers to the total amount of IIT payable in Shenzhen for the applicant’s salary, labor remuneration, author’s remuneration, royalties, business income, and subsidized income from talent projects in the year of 2020. That is the tax amount on annual IIT declaration incluidng the applicant who does not need to complete the annual IIT declaration.
*‘Tax computation?is 15% of applicants?tax payable.
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(2)
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The amount of IIT of subsidies is calculated based on individual income items and combined release.
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(3)
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If the applicant has already applied for high-level talent incentive subsidies in Shenzhen or each district in the year 2020. This subsidy amount need to be deducted from the actual IIT subsidy. If the IIT subsidy is lower than the high-level talent incentive subsidy in Shenzhen and districts, no subsidy will be released.
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(4)
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The maximum amount of IIT subsidy is RMB 5 million.
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- Application period and process for IIT subsidy
From August 16, 2021 to September 30, 2021, applicants can complete the unified identity authentication by Guangdong unified identity authentication platform or go to the administrative service department of all districts in Shenzhen. Then apply for IIT subsidies on the official website of Shenzhen Human Resources and Social Security Bureau.
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