China Extends Preferential Personal Income Tax Policies for the GBA to the End of 2027

On August 25, 2023, the Ministry of Finance (“MOF”) issued the Circular on Continuing the Preferential Personal Income Tax Policies in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) (the “Circular”), specifying that the relevant policies will remain in force until December 31, 2027.

The Circular clarifies that Guangdong province and Shenzhen municipality will offer subsidies to overseas (including Hong Kong, Macao, and Taiwan, the same below) high-end talents and talents in high demand who work in the GBA to cover the difference in personal income tax rates between the Chinese mainland and Hong Kong, and such subsidies are exempted from personal income taxes. As for the the recognition and subsidy measures for overseas high-end talents and talents in high demand who work in the GBA, the relevant provisions of Guangdong province and Shenzhen municipality shall be implemented. The Circular will apply to the nine cities in the Pearl River Delta region, including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing.