Recently, the Tax Bureau of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and the Tax Bureau of Baoan District of Shenzhen jointly released the Circular on the Application Guidelines for the Preferential Individual Income Tax Policies in Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone for the year 2023. Eligible Hong Kong residents may apply for an individual income tax (IIT) refund for the year 2023 during the annual IIT filing and settlement period in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (hereinafter referred to as “Qianhai”) before 30 June 2024.
Legal Basis
The Circular on Preferential Individual Income Tax Policies in Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone (Caishui [2024] No. 12): During the period from 1 January 2023 to 31 December 2027, Hong Kong residents working in Qianhai will be exempted from the portion of individual income tax that exceeds what they would pay in Hong Kong. The above preferential treatment is applicable during the annual IIT filing and settlement period in Qianhai.
Conditions for Applicants
(1)
Must be a resident of Hong Kong.
(2)
Must be employed by and work for an enterprise or other organization registered in Qianhai that performs substantial operations, provide independent personal services, or engage in production and business activities within Qianhai, and pay IIT according to the law.
(3)
Must adhere to all relevant laws and regulations and have no major tax violations or breaches of trust within the latest three years.
Application Period
(1)
Consolidated income (including salaries and wages, remuneration for personal services, author’s remuneration and royalties): From 1 March to 30 June 2024.
(2)
Business operation income: From 1 January to 31 March 2024. Taxpayers who meet the conditions but have not enjoyed the preferential treatment before the release of the guidelines may apply for IIT refund before 30 June 2024.
(3)
Talent subsidies income recognized by the local government: Apply for together with the annual IIT filing and settlement for consolidated income and business operation income of the Hong Kong residents.
(4)
Non-resident taxpayer who is not required to handle the annual IIT filing and settlement according to laws and regulations must apply for the IIT refund during the period from 1 March to 30 June 2024.
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