China has recently made the decision to extend the favorable tax benefits provided to foreign professionals employed within the Guangdong-Hong Kong-Macao Greater Bay Area. This extension will now remain in effect until December 31, 2027, with the primary objective of supporting the ongoing growth and advancement of the region. This announcement was issued by the Ministry of Finance (MOF) on a Friday.
As part of this extended policy, highly skilled foreign talent and individuals in occupations facing shortages, who are engaged in work within the Greater Bay Area, will receive financial incentives from both Guangdong Province and Shenzhen Municipality. These incentives are designed to bridge the gap between the individual income tax rates applicable in mainland China and Hong Kong. This collaborative effort is detailed in an official circular jointly released by the MOF and the State Taxation Administration.
A noteworthy aspect of this policy is that the financial subsidies provided will be exempt from individual income taxation, thereby enhancing the attractiveness of the scheme for eligible overseas professionals.
In addition to the tax policy extension, the MOF has also introduced a new departure tax refund initiative for foreign tourists. This policy will come into effect on September 1 and will be implemented in Ningbo, situated in the eastern province of Zhejiang. This step is expected to offer further incentives to foreign visitors and promote tourism in the region.
