Hainan province is to allow all top hires in its upcoming free trade port who are earning more than CNY300,000 a year, or who have been designated as eligible by government authorities, to preferential personal income tax rates of not more than 15 percent, the local government said today.
Employees must have signed a contract of at least one year with a company registered at the Hainan Free Trade Port, it said. The personal income tax rates will be valid until the end of 2024, after which the free trade port should be in full operation and tax rates will be adjusted according to its economic and social development, it added.
Employees work in a company at Hainan Resort Software Community
According to China's current tax rates, which are stepped with a maximum rate of 45 percent, a net salary of CNY319,000 a year is also subject to around 15 percent tax. Therefore the Free Trade Port's benefits will only kick in for higher salaries.
The Guangdong-Hong Kong-Macao Greater Bay Area has similar preferential tax policies but the criteria for selecting those eligible are much stricter. Employees must be chosen by recruitment teams at the city level or above, be members of scientific research teams or technicians working on major innovation projects.
Hainan province is to allow all top hires in its upcoming free trade port who are earning more than CNY300,000 a year, or who have been designated as eligible by government authorities, to preferential personal income tax rates of not more than 15 percent, the local government said today.
Employees work in a company at Hainan Resort Software Community
