5 Aug 2019
Shenzhen Revises Tax Deductions and Exemptions Schedule
Shenzhen has revised its policy with regard to tax deductions and exemptions. The changes, announced by the Shenzhen Tax Service, took effect as of 1 June 2019.
One of the key changes is a tax exemption for individuals in receipt of a lump-sum payment relating to employment termination (including economic compensation, living allowances and other subsidies) which is no more than three times the annual local average wage. According to the Shenzhen Statistics Department, as of the end of 2018, the annual average wage for an employee in non-private-sector work in the city was RMB111,709, equivalent to an average monthly salary of RMB9,309. The threshold for tax exemption on lump-sum employment termination compensation in Shenzhen has, therefore been adjusted to RMB335,127, with any payment in excess of this figure subject to individual income tax.
Source: Shenzhen Tax Service of the State Administration of Taxation