Today I saw a piece of news: Over 20,000 people have applied for the personal income tax subsidy for high-end talents from outside the Greater Bay Area, totaling more than 5.5 billion yuan after 3 years.

The 20,000 applicants saved a total of 5.5 billion in taxes, averaging about 27,500 yuan per person, which is almost enough to buy a BMW 3 Series outright!

Among these 20,000 people, many are residents of Hong Kong who have developed in the Greater Bay Area. By applying for this subsidy, they not only enjoy the development opportunities of the Greater Bay Area but also benefit from ultra-low tax rates like those in Hong Kong.

It is well known that Hong Kong has low taxes, but most people may not fully understand how to enjoy the tax subsidy system in the mainland after obtaining Hong Kong identity.

So today, let's take a look at how much tax can be saved each year after obtaining Hong Kong identity.

Hong Kong identity talents in the Greater Bay Area "Hong Kong people, Hong Kong tax"
For many who obtained Hong Kong identity through the Quality Migrant Admission Scheme, their work and life focus remains in the mainland, which inevitably requires them to declare and pay taxes according to the mainland tax rates, although this was the case in the past.
The specific measures and implementation times in the 9 cities of the Greater Bay Area vary, but the subsidy amount is generally the tax paid minus personal income tax * 15%. In other words, for Hong Kong talents working and paying taxes in the nine cities of the Guangdong-Hong Kong-Macao Greater Bay Area, the portion of personal income tax exceeding 15% is subsidized by the local government.

Similarly, based on an annual salary of 1 million, one can enjoy a tax subsidy of 95,000 yuan each year.
Under the personal income tax subsidy policy in the Greater Bay Area, the tax benefits of "Hong Kong people, Hong Kong tax" are equivalent to a "salary increase" for Hong Kong identity talents. Currently, the tax benefits for Hong Kong talents in the mainland are only available in the 9 cities of the Guangdong-Hong Kong-Macao Greater Bay Area. Whether there are similar benefits in other cities in the mainland depends on local government policies. I believe that in order to promote the integration of the two regions, more cities in the mainland will implement tax benefits for Hong Kong people in the future.

On the other hand, the information system in the mainland is very developed now, making it very convenient to submit talent information and declare tax refunds. If Hong Kong people find good opportunities in mainland cities in the Greater Bay Area, they can confidently go there without worrying about the "personal income tax wall" issue.

Hong Kong's tax exemption items can also be quite diverse!

The tax exemption for married individuals is $264,000.

Having two children can also provide a tax exemption of $240,000.

Supporting two elderly people over 60 years old adds another $100,000 in tax exemption.

In addition, there are tax deductions for elderly care expenses of $50,000, personal education expenses of $50,000, and housing loan deductions of $80,000.

Finally, with an annual income of 1 million, the total taxable income is only 216,000! Nearly 800,000 of it is tax-free!
According to the tax rate brackets in Hong Kong, after deductions and subtracting 20,000 in tax relief, the tax payable on a 1 million annual salary is:

50000*2%+50000*6%+50000*10%+50000*14%+16000*17%-20000=8000

The tax payable in Hong Kong compared to the mainland is a full 25 times different! It's just a fraction of the tax amount paid in the mainland, saving nearly 195,000 in taxes in a year!