16 August 2024
The Tax Service of Shenzhen Municipality, State Taxation Administration (“the authorities”) issued the “Notice in relation to Adjusting the 2024 Deductions before Tax and Exemption Standards for Individual Income Tax in Shenzhen Municipality” (“the Notice”) on 16 August 2024. The authorities proposed that the tax exemption standard for one-off compensation income received by individuals in Shenzhen Municipality upon termination of their employment relationship with an employer is adjusted to RMB523,920. Any amount exceeding the threshold will be subject to individual income tax according to relevant regulations. The Notice is effective from 1 June 2024.