Foreigner tax benefits extended to 2027

In a recent move, the Ministry of Finance and the State Administration of Taxation have jointly issued two announcements, each designed to reduce the financial load on taxpayers in China. These announcements concern the continuation of the individual income tax subsidy policy for foreign individuals, and the current preferential one-time bonus tax policy for both foreigners and Chinese.

Both these policies mark an extension of current policies which otherwise would have expired at the end of the year. By announcing these extensions now, the Chinese government is creating a high level of transparency that is another positive sign for international businesses operating in China.