South China Connectivity: New tax & education policy to support talent acquisition in Greater Bay Area

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Talents are continuing to flow into South China's Greater Bay Area as authorities have issued a series of new preferential policies. A new tax subsidy and a policy in the education sector are looking to make the area a more competitive region compared to other parts of China. CGTN reporter Zhu Longzhou has the details.

Taxes on business and trade throughout the Greater Bay Area are seeing their first adjustment in the form of a new subsidy. This is one of many selling points the GBA has for talents and potential investment.

JACK LAM, DIRECTOR HONG KONG & MACAO YOUTH ASSOCIATION, GUANGZHOU "I believe for most young entrepreneurs in Hong Kong and Macao, they are very concerned about taxation. For domestic and overseas 'high-end' and 'urgently-needed' talents, the preferential tax subsidy is really helpful."

Newly introduced talents will now receive a personal income tax subsidy from the government, pegged at 15 percent.

For example, an employee who earns one million yuan (about 150,000 US dollars) annually has to pay taxes of 450,000 yuan (70,000 US dollars). However, under the preferential policy, the tax amount payable is cut down to 150,000 yuan (20,000 US dollars), and the rest of taxes will be subsidized by the government.

Yet before the new policy was even introduced, foreign investors and other businesses in South China had a range of doubts and concerns.

GENE YEUNG, DEPUTY MANAGER INTEGRATED MANAGEMENT, HONG KONG & MACAO YOUTH ASSOCIATION, GUANGZHOU "Before that, for the foreigners they also do some business in China. They don't have many preferential treatments on their individual income tax, but after that, I think that will be the incentive for them to do some test planning."

In addition to tax subsidies, the local government also initiated the construction of basic facilities and innovation service centers earlier this year in order to optimize the living and working environment to lure global high-end talents.

MA XINGRUI GOVERNOR, GUANGDONG PROVINCE "The GBA's academic collaboration will help with the construction of major science and technology infrastructure, state key laboratories, and more. In addition, certain tax incentives will be given to scientists and technicians."

If a preferential taxation policy is meant to attract talents, then the new elementary education policy is to encourage them to stay. Guangzhou has set up the country's first test-run school system known as "Class for Hong Kong and Macao Children". It's providing public education at two elementary schools for kids from the two SARs.

HE XIANFA BUSINESSMAN FROM MACAO LIVING IN GUANGZHOU "Kids are the core of families. As long as they are settled, it helps a lot for the entire family. My son is now in this class and so are some of my friends' children, they all believe it is necessary and beneficial."

As the education policy suggests, for Hong Kong and Macao residence permit holders, who start businesses or work in Guangzhou, their children have access to quality education. And in the future, the hope is for more people to make the GBA their home for good. Zhu Longzhou, CGTN, Guangzhou.