The Influence of Shenzhen's New Tax Policy in 2020
The year 2020 has brought about new tax policies in Shenzhen, China. It is important for individuals and businesses to stay updated on these policies to ensure compliance and avoid any potential penalties. One of the new policies that will come into effect in 2023 is the requirement for individuals to meet certain conditions to be eligible to register their household in Shenzhen based on their tax records.
To be eligible to register their household in Shenzhen, applicants must meet the following conditions:
Firstly, they must meet one of the following identity and tax payment requirements:
1. The company's legal representative or person in charge who has accumulated a total of 3 years of tax payment of 3 million yuan or more in the past 3 consecutive years.
2. Individuals who have a personal sole proprietorship enterprise with a total accumulated tax payment of more than 600,000 yuan in the past 3 consecutive years, or natural person shareholders of a limited liability company with a total accumulated tax payment of more than 600,000 yuan by distributing the enterprise tax payment according to their investment proportion of the enterprise's actual paid-in capital, or individuals who have invested in partnerships with a total accumulated tax payment of more than 600,000 yuan.
3. Self-employed individuals who have accumulated a total of 300,000 yuan of tax payment in the past 3 consecutive years.
4. Legal employment individuals who have paid personal income tax of more than 240,000 yuan in accordance with the law while working in Shenzhen.
In addition to legally-employed individuals, other applicants must have worked for the same enterprise (i.e. the same "unified social credit code") for the past 3 consecutive years and must continuously possess the corresponding identity qualifications.
Secondly, applicants must not be over 50 years old. If their tax payment exceeds the prescribed amount by more than 100%, the age requirement for household registration can be extended to less than 55 years old (not including 55 years old).
Thirdly, if the applicant's household registration book reflects their status as government personnel, a non-permanent proof from the unit they are at and an agreement to move the household registration must be obtained.
Lastly, there should be no record of participating in any activities that are prohibited by the country.
To apply for household registration in Shenzhen, applicants must provide documentation such as their tax payment proof, company information and shareholder information certified by the Industry and Commerce Bureau, household registration book, identity card, and marriage certificate (for married couples).
The processing time for Shenzhen household registration is typically one to two months.
In conclusion, the new tax policies in Shenzhen bring both opportunities and challenges. The policies aim to promote tax compliance, but not all individuals and businesses will meet the new requirements for household registration. It is crucial for individuals and businesses to adapt accordingly to avoid unnecessary repercussions.