Shenzhen To Lower Income Tax Rate to 15% from 45%... For Some
04 Jun 2019
At the 2019 Future Forum·Shenzhen Technology Summit, held in late May, deputy Mayor of Shenzhen, Wang Lixin, made a few sweeping announcements. Among them, that Shenzhen will lower the tax rate to 15%, from 45%, for some foreign and local talents.
Regarding the overseas talent introduction policy, Wang Lixin said that “Shenzhen has already introduced a series of talent policies in recent years, attracting talents from all walks of life at home and abroad, providing a source of water for innovation-driven development."
- China Unveils New Favorable Tax Rules for Foreigners
- China Enticing Foreigners with New Retroactive Tax Break
"The personal income tax of high-end scientific and technological talents will be 15%, and the difference will be paid by the Shenzhen Municipal Government," Wang Lixin said. “Suppose you earn a million yuan a year. Under the new rules, you will need to pay 150,000 yuan as income tax, which saves you about 300,000 yuan at the current level,” Wang told attendees at the innovation summit.
Lowering Home Prices
On April 29th, the Shenzhen Housing and Construction Bureau also announced the intention to implement Shenzhen housing system reform, and that three drafts have already been presented by various bureaus and departments for comment. The three drafts suggest that subsidized homes be equally split into three parts, including public rental homes leasing for 30 percent of market rent, affordable homes at half of the market rate and other homes at 60 per cent of the market rate. This move is regarded as a policy of “grabbing talents and benefiting people” in Shenzhen as many have been or plan to move out of the city due to the increasingly high home prices.
Growth Driven by Talent
It is no accident that Shenzhen has produced so many innovative enterprises. At the 17th China Domestic Talent Exchange Conference, Shenzhen Municipal Party Committee Secretary Wang Wei said that it is precisely because a batch of outstanding talents from outside the world have been gathered and molded, the total value of Shenzhen’s regional consumption from 1979 1.96 billion yuan, increased to 2.4 trillion yuan in 2018, an average annual growth rate of 22.4%.
Shenzhen Second in the Country
Wang Lixin said that the number of high-tech enterprises in the city has reached 14,400, ranking second, only to Beijing, surpassing Guangzhou and Shanghai. (In 2018, the number of high-tech enterprises in Shenzhen increased by 3,185, with a total of 14,415, ranking second in large and medium-sized cities nationwide).
Overall, in 2019, the budget for Shenzhen Science and Technology R&D funds was 12.3 billion yuan, an increase of 8.413 billion yuan over the previous five years, an increase of 500%, of which the basic research arrangement was 4.536 billion yuan, accounting for 36.87% of the research and development funds. From January to March of this year, Shenzhen continued to maintain scientific and technological expenditures. The city's fiscal and technological expenditures totaled 8.233 billion yuan, accounting for 6.98% of the general public budget expenditure.
In the past two years, two provincial laboratories have been established, one is the Pengcheng laboratory, which is engaged in the research of cyberspace information; the other is the Shenzhen Bay Laboratory, which is engaged in life information and biomedical research, and established 10 Nobel Prize labs. Including the Fields Medal and the Turing Award, 13 basic research institutions have been established, and it is hoped that the establishment of this series of basic research institutions will attract scientists from around the world.
Wang Lixin concluded by saying, "Everyone has seen from the recent situation that basic research is very important to Shenzhen and China. We used to say that when we went to college in the 1980s, we learned that if we learn mathematics and physics we can confidently work anywhere. Today we update the slogan, that is, 'by learning mathematics and physics, we can confidently compete anywhere.'"
Source: The Financial Club of China: 短缺人才45万个税政府帮缴30万，深圳15%税收优惠刷屏！ 副市长高呼：学成一定要归来！
Ladies enjoy FREE freeflow wine, cocktails and bubbly at Xpats in Sea World. Don't miss the spectacular live music performance by the Xpats House Band, Pirate X! Don't worry gentlemen, we have buy 1 get 1 free happy hour until 9pm for you as well!
at Xpats Bar & Grill Sea World
Join us Saturday July 20 for George and Dragon's 7th anniversary party with our famous Pig...
at George and Dragon British Pub
Recent Articles more articles
One of the most terrifying experiences one can have is being in a tall burning building. Trust me, I've been there myself. Shenzhen has improved its fire safety; however, it's still important for everyone to know what to do in this type of situation.
Head on down to the Mission Hills Sport & Eco Park for the inaugural LakeFest event with seven themed zones, spread over 50,000sqm, for a summer carnival, unlike any other.