Guang­dong at­tracts tal­ent with tax breaks

Global Times US Edition - - BIZUPDATE - By Zhang Hong­pei Page Ed­i­tor: wang­[email protected]­al­

The Guang­dong-hong Kong-macao Greater Bay Area is build­ing its tal­ent pool by rolling out very fa­vor­able tax poli­cies, which an­a­lysts said will boost the hub’s growth amid the re­gion’s pur­suit of ad­vanced technology and in­no­va­tion.

To at­tract top tal­ent from abroad and pro­fes­sion­als who are in short sup­ply, the amount of in­di­vid­ual in­come tax sur­pass­ing 15 per­cent of the ba­sis will be paid by lo­cal gov­ern­ments’ sub­si­dies, ac­cord­ing to a no­tice is­sued by the De­part­ment of Fi­nance of South China’s Guang­dong Prov­ince on Satur­day. In­di­vid­u­als will be ex­empt from pay­ing that por­tion of the tax, it said.

The no­tice was is­sued to the nine city gov­ern­ments in the prov­ince that are in­volved in the Greater Bay Area in­clud­ing Shen­zhen, Dong­guan and Zhuhai.

Con­sist­ing of the Hong Kong and Macao spe­cial ad­min­is­tra­tive re­gions (SARS) and the nine cities in Guang­dong, the area cov­ers 56,000 square kilo­me­ters. It had a com­bined pop­u­la­tion of about 70 mil­lion at the end of 2017.

Wang Lixin, vice mayor of Shen­zhen, told a fo­rum in May that “if your an­nual salary is 1 mil­lion yuan [$145,600], now you only have to pay 150,000 yuan of in­come tax com­pared with the pre­vi­ous 450,000 yuan, sav­ing 300,000 yuan.”

“The pol­icy ad­just­ment is aim­ing to off­set tax dif­fer­en­tials be­tween the Chi­nese main­land and Hong Kong and Macao, pro­vid­ing a sim­i­lar tax liability as pro­fes­sion­als can en­joy in the SARS,” said Mao Yan­hua, a pro­fes­sor at the In­sti­tute of Guang­dong, Hong Kong and Macao De­vel­op­ment Stud­ies at the Sun Yat-sen Univer­sity in Guangzhou.

Based on the over­all im­prove­ment of the busi­ness en­vi­ron­ment and strength­en­ing sup­port for in­no­va­tion as well as strate­gic newly emerg­ing in­dus­tries, the Greater Bay Area is bound to lure and re­tain more brains, Mao told the Global Times on Sun­day.

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