Preferential ITT Policy for Expatriates Extended to End of 2023
On 31 December 2021, China’s Ministry of Commerce and State Taxation Administration released the Announcement on the Continuation of Implementation of Individual Income Tax Preferential Policies for Foreign Nationals’ Benefits (MOFCOM STA Announcement [2021] No.43). According to the Circular, foreigners working in China will continue to enjoy tax exemption on housing rental, children’s education costs, and language training costs for another two years till 31 December 2023. The government has also extended its preferential treatment for annual one-time bonuses until the end of 2023. The bonus will continue to be taxed separately, rather than being combined and taxed together with regular income.