Personnel Policy

Document of Shenzhen Municipal People’s Government

  Shenzhen Municipal Government [2012] No. 143
  Notice of Shenzhen Municipal People’s Government on Printing and Distributing the Interim Measures on Financial Subsidy for Individual Income Tax of Overseas High-level and Short-supplied Talents in Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone of Shenzhen
To District People’s Governments and Departments Directly under Municipal Government:
  The Interim Measures on Financial Subsidy for Individual Income Tax of Overseas High-level and Short-supplied Talents in Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone of Shenzhen are hereby printed and distributed to you for your compliance and implementation. 
  The notice is hereby given.
  Shenzhen Municipal People’s Government (stamp)
  December 24, 2012
  Interim Measures on Financial Subsidy for Individual Income Tax of Overseas High-level and Short-supplied Talents in Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone of Shenzhen
  Article 1. These Measures are enacted pursuant to the Approval of The State Council on the Supporting Policies of the Development and Opening up of Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone of Shenzhen, the Overall Development Plan of Qianhai Shenzhen – Hong Kong Modern Service Industry Cooperation Zone and the Ordinance on Qianhai Shenzhen –Hong Kong Modern Service Industry Cooperation Zone in Shenzhen Special Economic Zone, under the principle of formulating pilot fiscal and tax preferential policies within the national tax reform framework, with a view to attracting overseas high-level and short-supplied talents to work in Shenzhen Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone, establishing and improving a mechanism conducive to the gathering of human resources in the modern service industry, as well as providing personnel support for the construction and development of Qianhai.
  Article 2. For the individual income tax from wages and salaries paid by overseas high-level and short-supplied talents working in the preferential industries in Qianhai, the amount exceeding 15% of taxable income from wages and salaries shall be given full subsidy by Shenzhen Municipal People’s Government (hereinafter referred to as “Municipal Government”). The above subsidy obtained by any applicant shall be exempted from individual income tax.
  Article 3. The term “overseas high-level and short-supplied talents” refers to overseas talents who work for more than one year in Qianhai enterprises or organizations of preferential industries and whose annual wages and salaries reach a certain scale. These talents shall be accredited by the Authority of Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone (hereinafter referred to as “Qianhai Authority”) in accordance with relevant principles of laws and administrative regulations of the Municipal Government. Specific accreditation measures shall be regulated by relevant government departments.
  Article 4. The term “income from wages and salaries of overseas high-level and short-supplied talents” refers to wages, salaries, bonuses, year-end extras, profit shares, subsidies, allowances and other income related to the tenure of an office or employment obtained by overseas individuals by virtue of the tenure of an office or employment in Qianhai, in the forms of cash, physical objects and negotiable securities.
  The subsidy from the Municipal Government shall be given to the income from wages and salaries which are taxed at progressive tax rates. The subsidy shall not be given to one-time income or contingent income that is taxed at a flat rate of 20%.
  Article 5. The Qianhai Authority and the Finance Commission of Shenzhen Municipality (hereinafter referred to as “Shenzhen Finance Commission”), in accordance with the principles of clear responsibilities, normative procedures and collaboration, shall be responsible for budgeting, reviewing and appropriating the fiscal subsidy applicable in these Measures.
  Article 6. The Qianhai Authority shall be responsible for accrediting organizations, individuals applicable to these Measures, as well as the start date of fiscal subsidy. The qualification of applicants and the amount of subsidy shall be preliminarily examined by the Qianhai Authority and further reviewed by the Shenzhen Finance Commission. The Qianhai Authority shall establish and improve an archive system of qualified applicants. Applying organizations shall report to the Qianhai Authority for file when information of their applicants changes. 
  Article 7. The Shenzhen Finance Commission shall be the examination and approval organization of these Measures. The Shenzhen Finance Commission shall, in accordance with the results reported by the Qianhai Authority on examination of eligible organizations and individuals and the Individual Income Tax Payment Certificate of eligible applicants, as well as the subsidy appropriation standards, examine, approve and appropriate the subsidy. 
  Article 8. The Qianhai Authority shall report the total amount of individual income tax subsidy to the Shenzhen Finance Commission by the end of every November, and together with the applying organizations, report materials including copies of business license, name list of overseas employees, payroll and Individual Income Tax Payment Certificate to the Shenzhen Finance Commission for record.
  Article 9. The Shenzhen Finance Commission shall review the total amount of subsidy reported by the Qianhai Authority and list it into the budget of Municipal Government at the corresponding level. The needed amount of subsidy shall be borne by both the Municipal Government and District Government according to the fiscal system of Shenzhen and its districts.
  Article 10. The appropriation of individual income tax subsidy of Qianhai shall follow the below principles:
  (1) Clear Criteria. The Subsidy given to the applicants shall be equal to the amount of individual income tax paid by the applicants in Qianhai that exceeds 15% of taxable income from wages and salaries
  (2) Proper Subsidy. Applicants who enjoy the individual income tax subsidy of Qianhai shall not enjoy other Shenzhen preferential talents policies with reducing individual income tax as main subsidy. 
  (3) Convenient Operation. The Qianhai Authority and the Shenzhen Finance Commission shall process applications once a year. Applications of subsidy of the previous year shall be accepted from March 1st to 30th every year. 
  Article 11. Applications shall be accepted only under the name of enterprises and organizations; individual applications shall not be accepted.
  Article 12. Before starting the process of Qianhai individual income tax subsidy every year, the Qianhai Authority shall, jointly with the Shenzhen Finance Commission, make an annual subsidy application guide according to the development of industries and introduction of talents in Qianhai. The guide shall specify detailed application requirements, procedures, materials and time limit and other necessary information. 
  Article 13. After withholding and remitting individual income tax of overseas employees to the Local Taxation Bureau of Shenzhen Municipality and obtaining the qualification to apply for subsidy from the Qianhai Authority according to law, the applying organizations shall apply to the Qianhai Authority for the individual income tax subsidy of overseas high-level and short-supplied talents. All the applications shall be gathered and reported to the Shenzhen Finance Commission by the Qianhai Authority. 
  Article 14. When applying for the individual income tax subsidy to the Qianhai Authority, applying organizations shall hand in the following materials:
  (1) application reports by the applying organization;
  (2) application form of Qianhai individual income tax subsidy of overseas high-level short-supplied talents and application list for individual income tax subsidy of overseas high-level and short-supplied talents; and
  (3) copies of passports, payroll, Individual Income Tax Withholding Return Form, copy of Individual Income Tax Payment Certificate and other valid documents admitted by the Qianhai Authority which help to accredit the identity, income, tax payable and tax withheld of overseas high-level short-supplied talents.
  Article 15. When reporting the individual income tax subsidy to the Shenzhen Finance Commission after the preliminary examination of materials of applying organizations, the Qianhai Authority shall submit the following materials:
  (1) accreditation documents of organizations and individuals applicable to these measures;
  (2) preliminary examination results of the individual income tax subsidy of the previous year;
  (3) annual list of examination results of individual income tax subsidy of overseas high-level short-supplied talents; and
  (4) copies of passports, payroll, Individual Income Tax Withholding Return Form, copy of Individual Income Tax Payment Certificate and other valid documents admitted by the Shenzhen Finance Commission which help to accredit the identity, income, tax payable and tax withheld of overseas high-level short-supplied talents.
  Article 16. The Shenzhen Finance Commission shall review the materials handed in by the Qianhai Authority and appropriate the subsidy in accordance to the relevant provisions. The subsidy shall be directly appropriated from the Shenzhen Finance Commission to the appointed bank accounts of applying organizations instead of the personal bank accounts of the applicants. The applying organizations shall appropriate the subsidy to the personal bank accounts of their applicants within 10 working days after the organizations received the subsidy. 
  Article 17. The Shenzhen Finance Commission shall, jointly with the Qianhai Authority, carry out a special inspection on the use of individual income tax subsidy in Qianhai every year.  
  Article 18. Organizations and individuals who are subject to any of the following circumstances shall not apply for the subsidy:
  (1) failing to pay taxes according to law;
  (2) having an unfavorable credit record;
  (3) committing intellectual property violations; 
  (4) violating laws or regulations. 
  Article 19. Applicants, including organizations and individuals, shall truthfully submit application materials and shall be responsible for the authenticity and accuracy of the materials. Once the applicants were verified that they have provided false materials or the applicants have failed to pay or underpaid the amount of tax payable, the applicants shall be disqualified; subsidy given to those having the above acts shall be recovered; if the case constitutes a crime, it shall be transferred to the judicial organs for criminal liabilities.
  The relevant information of applicants that summited false materials shall be reported by the Qianhai Authority to the personal credit information agencies and enterprises credit information center. Those applicants and applying organizations shall be disqualified for 3 years. 
  Article 20. The Qianhai Authority and the Shenzhen Finance Commission shall be responsible for the confidentiality of the copies of passports, payroll, Individual Income Tax Payment Certificate and other materials concerning the privacy of the applicants.
  Article 21. These Measures are the local pilot preferential policies implemented in Qianhai within the current national tax reform framework. After specific national regulations on the individual income tax subsidy of overseas high-level and short-supplied talents are formulated, those regulations shall be implemented, and these Measures shall be superseded at the same time.
  Article 22. These Measures shall be subject to the interpretation of the Municipal Government. The Shenzhen Finance Commission and the Qianhai Authority are authorized to interpret these Measures.
  Article 23. These Measures shall come into effect on January 1, 2013 and shall remain in force for 5 years. The Municipal Government reserves the right to modify, extend or terminate these Measures on the basis of actual implementation.