Seeking New Talent, Hainan Lowers Income Tax rate at 15%...
We are not an Agent or Recruiter, but a Headhunter !
Authorities in southern China’s Hainan province have drastically lowered the local income tax rate for the province’s top earners in a bid to lure top talents.The rate will apply to individuals making at least 300,000 yuan annually from a business registered within the province’s free-trade zone.
The government of the island province introduced the new policy at a press conference Thursday, setting the top-tier income tax rate at 15%, far lower than elsewhere on the Chinese mainland.
The
reduced tax rate applies to people who earn an annual income of 300,000
yuan ($43,700) or more and have signed at least a one-year labor
contract with a company registered in Hainan’s free-trade port. The policy will remain in effect through 2024.
“Hainan
is relatively lacking in talent, especially compared with China’s
advanced regions,” Sun Dahai, director of the free-trade port’s work
committee office, said at the press conference. “We believe the
preferential personal income tax policies, in combination with
preferential corporate income tax policies and others, will definitely
attract more high-end and in-demand talents, both domestic and foreign,
to Hainan.”
The highest personal income tax rate on the Chinese mainland is 45%, while the highest rates in Hong Kong and Singapore are reportedly 17% and 22%, respectively.
Hainan
is seeking top talents with expertise in a number of sectors including
tourism, logistics, education, and telecommunications, according to the policy document.
In April 2018, Hainan received approval to establish its own pilot free-trade zone (FTZ). This June, the central government and the State Council, China’s Cabinet, issued
an “Overall Plan for the Construction of Hainan’s Free-Trade Port” that
outlined measures for promoting facilitated trade, investment, and
cross-border capital flow.
China’s first free-trade zone was inaugurated in Shanghai in 2013 and ultimately expanded last year. Eleven more FTZs were introduced in provinces such as Guangdong, Fujian, and Sichuan. In August 2019, the State Council issued a plan to establish six new pilot FTZs in the provincial-level regions of Shandong, Jiangsu, Guangxi, Hebei, Yunnan, and Heilongjiang, bringing the total number of FTZs in China to 18.
Not all top college students are first-rate talents
Students attend a graduation ceremony at Peking University on July 2. [Photo/Xinhua]
A notice for recruitment of candidates by public institutions of Yuhang district of Hangzhou, Zhejiang province, recently went viral on social media as even PhD holders and postgraduates from Peking University and Tsinghua University lined up for the jobs.
Later, a Yuhang district official clarified the notice was actually issued in 2018. Two experts share their views on whether elite students are wasting their talent on "petty" jobs with China Daily's Yao Yuxin. Excerpts follow:
Overemphasis on degrees from top universities wrong
Xiong Bingqi, deputy director of the 21st Century Education Research Institute
Many Chinese people believe that just by enrolling in Peking
University or Tsinghua University, a student is ensured of a bright
future and a decent job. For such people, excelling in the college
entrance exam, or gaokao, and qualifying to seek admission to either of the country's top two universities is in itself a great academic triumph.
That's why the decision of those postgraduates and PhD holders to
work in grassroots communities has surprised many people, sparking
debates online. Yet the fact is, the district in the eastern coastal
city has been hiring students from the two universities since 2017.
Such public debates have their root in the aura created around the
graduates from famous universities. Excessive emphasis on such
universities' diplomas will further intensify competition in gaokao,
causing more damage to the higher education system. It's not uncommon
to see some good, hardworking students in high school perform below par
after entering a good college, because they are sure of graduating and
landing a good job. Such a higher education system undermines talent
quality.
The craze to get admitted to a famous university should be curbed,
especially when higher education is no longer the realm of a chosen
few-for example, more than 10 million of the 10.7 million students who
took gaokao this year will qualify to enroll in colleges.
Besides, university students account for more than a half of the total
population of 18-22-year olds in the country.
There is a need for society to accord high priority to talent quality over diploma. After all, learning is a life-long journey.
Youth should serve society and country
Chu Zhaohui, a researcher at the National Institute of Education Sciences
It's wrong to consider all graduates, postgraduates and PhD holders
from Peking University, Tsinghua University or other top universities as
high-quality talents, because many of them could be mediocre students,
may not understand the value of education and/or lack expertise and life
skills.
It's also unfair to belittle jobs at the grassroots level, because
they can serve as a platform for going on to do greater things. The
stereotype of taking all top university students as crème a la crème
among job seekers is what has led to the present controversy.
The truth is that utilitarianism sometimes comes first in job
hunting. Instead of following their interests and ambitions, some
college graduates tend to opt for high earnings and/or stability when
applying for a job.
Actually, it's a waste of social resources to hire overqualified
candidates for jobs that can be done by relatively less qualified
people. This also hampers social progress. But some employers, rather
than recruiting those who best fit the occupation, blindly chase
candidates with degrees from reputable universities. For example, some
graduates from Peking University and Tsinghua University hired by Yuhang
district majored in biology or chemistry which doesn't come anywhere
close to the actual requirement of the work.
It's good to see that a growing number of highly qualified youths are ready to work at the grassroots level. As a developed part of the country, Yuhang district is capable of attracting talents with salaries and subsidies for housing. But rural areas are much more in need of talents and funds to develop.
The youth should stick to their aspiration, share social
responsibilities and use their knowledge to serve society and the
country, rather than be obsessed with getting high-paying jobs.
The views don't necessarily represent those of China Daily.
Source: By Cai Xuejiao, http://www.sixthtone.com/news/1006116;
By Yao Yuxin,China Daily
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