Hainan Offers Tax Benefits to Attract High-End Talents

A new preferential income tax policy has been introduced in order to attract talent to the Hainan Free Trade Port. According to a circular (Cai Shui No. 32 [2020]) jointly issued by the Ministry of Finance and the State Taxation Administration, the policy is applicable during the period from 1 January 2020 to 31 December 2024 to support port development by attracting high-end and urgently needed talent.

Details of the policy include:

• Individual income tax in excess of 15% of their actual tax burden will be waived for high-end and urgently needed talent working in the free trade port.

• Income tax eligible for the preferential policy covers comprehensive income (including wages and salaries, remuneration for labour services, author’s remuneration and income from royalties), business income and talent subsidies recognised by the Hainan provincial government.

• Taxpayers will enjoy the aforesaid preferential policy when they file annual individual income tax returns on a consolidated basis.

• Hainan has a list of high-end and urgently needed talent who can enjoy the preferential policy. The specific administrative measures will be formulated by the province in consultation with the Ministry of Finance and the State Taxation Administration .

Source: State Taxation Administration