China Tax Refund Applications

To attract foreign and domestic investment, the Chinese Central Government refunds part of the corporate income and value added tax paid by qualified businesses registered in certain parts of China.

But regulation and implementation differs between regions. In some economic zones, besides tax refunds, local investment offices have additional incentives that include rental subsidies, R&D rebates, and establishment incentives.

Our team helps investors to compare and identify suitable regions and enroll them in tax rebate programs through.

  • Business Model Analysis
  • Local Preferential Tax Scheme Comparison
  • Preferential Tax Policy Agreement Drafting
  • Periodic Tax Refund Calculation and Collection

Tax incentives in Great Bay Area and Hainan Free Trade Port

In an effort to attract more investment and talent to the Greater Bay Area and Hainan Free Trade Port the Chinese Central government issued special preferential tax policies for both areas in 2019 and 2020. Qualified companies and individuals can apply for the preferential treatment; however, the application process can vary considerable depending on your location within China.

Great Bay Area

To support the smooth implementation of the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) plan and attract overseas talents to work in the region, China has rolled out measures to grant preferential tax treatment for experts in certain high-end industries. The Greater Bay
Area officially announced that all eligible overseas employees working in the nine cities of the Guangdong province (Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Huizhou, and  Zhaoqing ) can enjoy a preferential tax rate of 15% in line with the Hong Kong Individual Income Tax rate.

Under current policies, overseas talents need to fit the basic definition of “high-end” and “critically-lacking” talents to receive preferential treatment under. They should be:

  • A candidate of the state, provincial, or municipal projects who has obtained a high-level talent card in Guangdong province, a Foreigner’s Work Permit (Class A), or a confirmation letter of a foreign high-end talent, as well as those who possess overseas high-end talents recognized by the state, provincial, and municipal authorities; or
  • A scientific and research team member of a major innovation platform of the state, provincial, or municipal level, or of a higher education institution, scientific and research institution, hospitals, or other relevant institutions, or a technical skills base and managerial personnel working or starting out his/her own business in a key industry or a key field within the Guangdong Province, or any other critically lacking talent with special expertise recognized by the nine municipal authorities within the GBA.

Hainan Free Trade Port (HFTP)

  • A 15% corporate income tax (CIT) rate (reduced from the statutory 25% rate) for taxpayers engaged in “encouraged” business activities in the HFTP;
  • A tax exemption for certain foreign-source income from newly formed foreign branches and new foreign direct investment of taxpayers established in the HFTP in the tourism, modern services, and high and new technology sectors;
  • Accelerated tax deductions for eligible capital expenditures by taxpayers established in the HFTP; and
  • A 15% effective individual income tax (IIT) rate for qualified talent working in the HFTP

Schedule a China Tax Refund Consultation

Schedule a China tax refund consultation with Acadia Advisory to discuss our China tax refund services and learn more about how we can assist your company in China.