An Introduction to the GBA and its New IIT Policies
The Greater Bay Area (GBA) represents a national development strategy to economically and socially integrate the nine cities in Guangdong province, as well as the Special Administrative Regions of Hong Kong and Macau, to create a world-class city cluster rivalling the world’s leading bay areas in San Francisco, New York and Tokyo.
To support the smooth implementation of the GBA plan and attract overseas talents to work in this region, China has rolled out measures to grant subsidies to overseas high-end and critically-lacking talents (including Hong Kong, Macau, and Taiwanese residents or “HKMT residents”).
On March 14, 2019, China’s Ministry of Finance (MOF) and State Administration of Taxation (SAT) jointly released Cai Shui  No.31 (Circular 31). The Circular allows eligible overseas talents to receive government subsidies to offset differences in the individual income tax (IIT) burden between mainland China and other regions. The plan will last for five years and end on December 31, 2023.
On June 22, Guangdong province released Yue Cai Sui  No.2 (GD Notice 2), which sets out the main criteria and principles for implementing the preferential IIT policy, including the requirements of applicants and the standard and scope of differential subsidies.
In this webinar, our Assistant Manager of Business Advisory Services team, Marcos Salgado, together with Daisy Huang, Senior Manager of Corporate Accounting Services, will provide you with an overview of the GBA initiative as well as a summary of the key points of these two recent Circulars.
This webinar features the following key topics:
- An overview of the GBA initiative
- Who will be benefit from preferential individual income tax (IIT) policy?
- How to calculate and apply for the subsidy?
- What are the unclear items for foreigner to declare IIT under the new law?
- Key take-aways on China IIT filing for foreigner (initial registration, timeline, tax free items etc)
- Important opportunities and issues businesses may face
- How DSA service teams can help?