China

China

Extends tax breaks for foreign workers until 2027

28 Aug 2023

On 28 August 2023, the Ministry of Finance and the State Taxation Administration announced the continuation of the implementation of individual income tax incentives benefiting foreign nationals (Announcement No. 29 of 2023). Consequently, foreign taxpayers will continue to receive tax exemptions for expenses related to rent, language training, and children's education. Initially, in late 2018, the Government had announced a gradual phasing out of tax concessions for expatriate allowances, with the transition period lasting until the beginning of 2022. However, the benefits related to individual income tax for expatriates, which were scheduled to conclude by year-end, have been extended until the conclusion of 2027. This extension aims to further attract foreign talent and investment to the country.

Nature of measure:
  • Incentives
Type:
  • Treatment and operation (Other)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: