{"id":1686,"date":"2023-10-24T03:59:33","date_gmt":"2023-10-23T19:59:33","guid":{"rendered":"https:\/\/www.hiredchina.com\/articles\/2023\/10\/24\/how-to-get-the-most-from-chinas-tax-exemption\/"},"modified":"2024-01-15T13:52:17","modified_gmt":"2024-01-15T05:52:17","slug":"chinas-tax-exemption-for-foreigners","status":"publish","type":"post","link":"https:\/\/www.hiredchina.com\/articles\/chinas-tax-exemption-for-foreigners\/","title":{"rendered":"How to Get The Most from China Tax Exemption?"},"content":{"rendered":"

China\u2019s new Individual Income Tax(IIT) law has come into effect this year. Considering it takes a tougher stand on foreigners and high-end talents for tax payment, we would like to share insights and help understand how foreign individuals can get the most<\/p><\/blockquote>\n

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China\u2019s new Individual Income Tax(IIT) law has come into effect this year. Considering it takes a tougher stand on foreigners and high-end talents for\"\"\u00a0tax payment, we would like to share insights and help understand how foreign individuals can get the most out of the new tax exemption system.\u00a0<\/span><\/p>\n

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First of all, you should know that for foreigners, there is a 3-year transitional period for getting used to the changes from the old\u00a0tax exemption system to the new one. That means foreign individuals can choose a tax exemption based on either the old system or the new one.<\/strong><\/span><\/p>\n

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Old Tax Exemption System<\/strong><\/span><\/p>\n

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Based on the old\u00a0ax exemption system, inbound foreign employees who would like to enjoy tax exemptions should file their application by themselves\u00a0or via withholding agents with the in-charge tax authorities. No tax exemptions will be granted without having completed their tax registration form.\u00a0There are eight items needed to qualify for\u00a0tax exemptions:<\/span><\/p>\n

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  1. 8 non-taxable\u00a0allowances: Travel allowances.
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  2. 8\u00a0non-taxable\u00a0allowances:\u00a0Housing allowance, meal allowances, moving expense, and laundry expenses received in non-cash form or on\u00a0a reimbursement\u00a0basis.
    \n<\/span><\/li>\n
  3. 8 non-taxable\u00a0allowances:\u00a0Home leave expenses.
    \n<\/span><\/li>\n
  4. 8 non-taxable\u00a0allowances:\u00a0Language training\u00a0expenses and children education\u00a0expenses.
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  5. Tax exemption for dividends.
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  6. Tax exemption for salaries and wages of foreign\u00a0experts.
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  7. Tax deferral\u00a0for\u00a0the stock\u00a0incentive of non-listed companies.
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  8. Tax deferral for stock incentives of listed companies.
    \n<\/span><\/li>\n<\/ol>\n

    To apply for the above deductions, foreigners should also submit:<\/span><\/p>\n