A promotional seminar on preferential tax policies titled “Global Wisdom for GBA Development and Preferential Policies for Reopening” was successfully launched recently via a combined “online + offline” approach where the “cloud live” communication was supplemented by in-person interactions and exchanges at the seminar. The seminar was hosted by Guangzhou Municipal Office of State Administration of Taxation (SAT), Guangzhou Municipal Science and Technology Bureau, Guangzhou Municipal Human Resources and Social Security Bureau, and organized by the tax office, the Science and Technology Bureau, the Human Resources and Social Security Bureau and the Talent Exchange Service Center of Huangpu (Development) District.
As understood, the seminar was oriented to the critically needed overseas high-level talents who are interested in starting their own businesses or working in Guangzhou. The seminar offered all-round interpretations on much-discussed issues like the preferential individual income tax (IIT) policy for overseas individuals, management of financial subsidies for preferential IIT subsidy in GBA, as well as accreditation criteria and procedures for critically needed high-level talents. In-person communication with leading practitioners in the medical technology industry was also conducted to discuss issues like avoidance of international double taxation, tax preferences for overseas returnees who start their own businesses, tax break for technology transfer, and more tax preferences in anti-COVID-19 sectors. Meanwhile, questions from audience were taken, with some immediately addressed at the seminar and the rest to be followed up afterwards.
The cloud live on tax policies attracted over 5,000 taxpayers city-wide. It provided targeted and efficient guidance on tax policies and services for Guangzhou to bring in the critically needed high-level overseas talents.
Creating a strategic hub for high-level, specialized, leading and critically needed talents
According to 2018 White Paper on Talent Development in Guangzhou, the city had 3.77 million college (or above)-degree holders, including six Nobel Prize laureates, 97 CAS or CAE academicians and 493 talents in the shortlists of major national talent programs. About 16,000 foreigners and nearly 80,000 returnees worked in the city. By the end of March 2020, a total of 925 high-level talents from Huangpu District (Guangzhou Development District) had been included into the national, provincial, municipal and district talent programs, topping the city and ranking among the top in the province in number of high-level talents.
In 2019, Guangzhou issued Opinions on the Implementation of the “Talent in Guangzhou Plan”. The program proposed to build a highly competitive, influential and leading strategic hub of critically needed high-level talents that is up to the world’s first-class standards. In August, the city formulated Interim Measures of Guangzhou for Administration of Financial Subsidies under Preferential Individual Income Tax (IIT) Policies in Guangdong-Hong Kong-Macao Greater Bay Area, stating that the overseas high-level talents and critically needed talents working in Guangzhou will be granted subsidies based on the IIT tax difference between the Chinese Mainland and Hong Kong, and the subsidies are exempt from IIT. These efforts have significantly lowered the actual tax burden of expatriates working in Guangzhou, and positively guided and promoted the city’s talent recruitment efforts.
Tax reduction and better services support talent recruitment and development
To advance the GBA development and help the innovation and entrepreneurship of the overseas talents in Guangzhou, SAT Guangzhou Municipal Office has been rendering strong supports in tax service. Last year, the Office launched 12 initiatives relating to GBA developments, including “Quick Filing” of agreed tax preferences, and “Easy Tax Service” based on residence permit offered to Hong Kong and Macao residents, etc. This year, more targeted tax services have been rolled out, such as the non-contact tax service, specific policy for specific service category, and non-differentiated and easy tax service for Hong Kong, Macao and Taiwan residents. These targeted and well-considered tax service measures have helped improve the business environment and promote the reopening at implementation level.
“The city government has issued a number of policies to support the newly started biomedical enterprises. These policies have promoted the industrial cluster effect and the city’s innovative development. The tax authorities also rendered many helps and services to us, especially the series of tax incentives related to the pandemic prevention, which are of great support to our reopening.” A managing director from Guangzhou Henovcom Bioscience Co., Ltd. gave high remarks at the seminar.
A department head in charge of international taxation from SAT Guangzhou Municipal Office said the tax authorities will, along with the implementation of “Spring Campaign for Easy Tax Service”, continue to solicit the needs and suggestions from the taxpayers, ensure timely response to talents’ demands, and sustain its contribution to the city’s initiative of creating a national pilot zone for business environment reform and innovation, and its efforts to facilitate the GBA development.