Hengqin issues preferential personal tax policies for high-end talent

The Guangdong-Macau In-Depth Cooperation Zone in Hengqin yesterday issued regulations allowing high-end and urgently-needed talent to enjoy preferential tax policies, detailing application conditions, talent standards and processing procedures.

According to the regulations, three types of talent can enjoy preferential personal income tax policies in the zone: high-end talent at the top level of a certain field or profession who has made outstanding contributions and is recognized as such by society; high-end talent earning more than 500,000 RMB in a tax year in the zone; and urgently-needed talent who meet the requirements of titles, academic or professional qualifications.

Engaging in the industries listed in the Encouraged Industry Catalogue in the Guangdong-Macau In-Depth Cooperation Zone in Hengqin is one of the prerequisites for talent to enjoy preferential personal income tax policies.

The catalogue, released on April 3, highlights sci-tech research and development, high-end manufacturing, Chinese medicine and other Macau brand industries, culture, tourism, exhibitions and trade, modern finance and more.

The zone will formulate standards for talent by taking into consideration the experience of winning major awards in China or globally, serving in important international organizations or top academic institutions, and so on.

The regulations also restrict the payment of social security by individuals and the substantive operation of enterprises.

Eligible talent are expected to work in the zone and pay basic pension insurance and other social insurance continuously for more than six months in a tax year.

An employment contract, employment agreement, service contract or other relevant document with an enterprise or institution operating substantially in the zone for more than one year is required.

For foreign talent who are unable to pay social insurance and domestic talent who have exceeded the statutory retirement age, there is no mandatory requirement for social insurance payments.

Instead, documents proving the employment relationship, such as labor contracts or employment agreements with enterprises or institutions operating substantially in the zone, are required, as cited in a statement issued by the Hengqin authorities.

The regulations consist of 12 articles and came into effect yesterday.  Staff Reporter