Promulgation Authorities： Ministry of Finance , State Administration of Taxation
Release Date： 2020.06.23
Effective Date： 2020.01.01
Doc Number： Cai Shui [2020] No. 32
Notice on Individual Income Tax Policies for High-end Talent and Talent in Short Supply in Hainan Free Trade Port
Cai Shui [2020] No. 32
Department of Finance of Hainan Province and Hainan Provincial Tax Service, State Administration of Taxation,
To support the development of the Hainan Free Trade Port, the preferential policies in respect of individual income tax (IIT) are hereby notified as follows:
I. For high-end talent and talent in short supply working at the Hainan Free Trade Port, the portion of their actual individual income tax burden exceeding 15% shall be exempted.
II. Income eligible for the aforesaid preferential policies shall include comprehensive income sourced from the Hainan Free Trade Port (including wages and salaries, remuneration for labour services, author's remuneration, and income from royalties), business income and talent subsidy income recognised by Hainan Province.
III. Taxpayers completing the formalities for annual final settlement of individual income tax in Hainan Province may enjoy the aforesaid preferential policies.
IV. A list of high-end talent and talent in short supply who enjoy the aforesaid preferential policies shall be adopted for administration of the said talent, and specific administrative measures shall be formulated by Hainan Province in consultation with the Ministry of Finance and the State Taxation Administration.
V. This Notice shall come into force on January 1, 2020 and remain effective until December 31, 2024.
Ministry of Finance
State Taxation Administration
June 23, 2020
