[China] Personal income tax policy for expats extended

In China, the Ministry of Finance and the State Administration of Taxation have announced the extension of the personal income tax policy on subsidies for foreign individuals, with the intention of easing taxpayers’ burden, City News Service reports.

The extension will provide foreign individuals meeting the conditions for tax residents (which refers to individuals who have domicile in China, or those without domicile who have resided for more than 183 days in total in China) with the option to choose between two tax benefits.

Under the provisions, eligible foreign individuals can reportedly opt to use the special additional deduction for personal income tax or follow the previous regulations to enjoy tax exemption benefits for housing subsidies, language training fees, children's education expenses and other subsidies.

They cannot, however, use both benefits simultaneously and once a choice is made it cannot be changed within one tax year.

The personal income tax policy on subsidies for foreign individuals has been in effect for several years and, for those who qualify, it has been beneficial.

This new extension will reportedly be implemented until December 31, 2027, providing a long-term framework for the personal income tax policy on subsidies for foreign individuals.

Source: City News Service

In China, the Ministry of Finance and the State Administration of Taxation have announced the extension of the personal income tax policy on subsidies for foreign individuals, with the intention of easing taxpayers’ burden, City News Service reports.

The extension will provide foreign individuals meeting the conditions for tax residents (which refers to individuals who have domicile in China, or those without domicile who have resided for more than 183 days in total in China) with the option to choose between two tax benefits.

Under the provisions, eligible foreign individuals can reportedly opt to use the special additional deduction for personal income tax or follow the previous regulations to enjoy tax exemption benefits for housing subsidies, language training fees, children's education expenses and other subsidies.

They cannot, however, use both benefits simultaneously and once a choice is made it cannot be changed within one tax year.

The personal income tax policy on subsidies for foreign individuals has been in effect for several years and, for those who qualify, it has been beneficial.

This new extension will reportedly be implemented until December 31, 2027, providing a long-term framework for the personal income tax policy on subsidies for foreign individuals.

Source: City News Service