By the end of December 31st, 2021, expatriates' tax-exempt
benefits will expire, which will have an incredible effect on their
taxable income in China and probably on their monthly expenditures.
These changes are part of China's policy of treating everyone
the same when it comes to taxes.
However, the expatriate's fringe benefits like housing and
children's education will be significantly reduced, making
expats deal with China's notoriously high rents and tuitions,
especially in the first-tier cities. For that reason, LehmanBrown
will be looking at the tax situation in China and the Pearl Delta,
as it has tax benefits while comparing an expat's tax in 2021
to that in 2022 with the changes. Specifically, four
different tax profiles will be considered, representing the common
tiers of expatriate salaries in the marketplace, along with
potential fringe benefits they may enjoy.
