Shenzhen, China’s technology hub, will extend more tax breaks to top overseas and local talent as it seeks to maintain its innovation edge amid an escalating trade war between the US and China, reported South China Morning Post.
Wang Lixin, deputy mayor in Shenzhen, said on Sunday the city would use its own operating income to make up for the shortfall in tax revenue. Under the scheme, income tax will be cut to 15% of annual income for certain individuals.
“Suppose you earn a million yuan [$144,894] a year. Under the new rules, you will need to pay RMB 150,000 as income tax, which saves you about RMB 300,000 at the current level,” Wang told an innovation summit in Shenzhen.
“We need to fill all the links in the supply chain. Then we are truly competitive in the world, and can truly have the power of say,” Wang added.