Global Mobility — China’s expatriate tax incentives extended through 2027
On August 28, 2023, the Chinese Ministry of Finance and the State Administration of Taxation announced a significant change that will positively affect expatriates and organisations in China.
The announcement states that the preferential income tax treatment on expatriate fringe benefits has been extended for another four years through 2027. This extension demonstrates the Chinese government’s commitment to providing a favourable environment for expatriates and encouraging foreign investment.
Under this preferential tax treatment, expatriates in China can enjoy certain benefits related to their employment, such as housing allowances, education allowances and relocation expenses. These benefits are subject to a reduced income tax rate, providing financial relief and incentives for expatriates working in China.
Extending this preferential tax treatment until 2027 offers greater stability and predictability for individuals and organisations. It allows them to confidently plan their budgeting and investments, knowing that these tax benefits will remain available for the next four years.
It is important to note that specific details and requirements for taking advantage of these benefits may vary, and expatriates and organisations should consult with tax advisors or relevant authorities to ensure compliance and maximise the advantages offered by this preferential tax treatment.
John Rason, Group Head of Consulting at Santa Fe Relocation remarks “This is a significant opportunity that is a potential success for all stakeholders—expatriates, their employers, the local Chinese economy and the Chinese government in the form of continued inbound investment.”
At Santa Fe Relocation, we understand the significance of staying updated with country tax policy and regulation changes, especially for expatriates and organisations in China. Our China relocation specialists provide comprehensive relocation services and guidance to ensure a smooth transition and compliance with local regulations.
We encourage all our clients and partners to take advantage of this extension of the preferential income tax treatment on expatriate fringe benefits in China. By effectively leveraging these benefits, individuals and organisations can optimise their financial strategies to enhance their expatriate’s experience further.
For any further information or assistance regarding this update or any other relocation-related queries, please feel free to reach out to our dedicated team at Santa Fe Relocation. We are here to support you every step of the way.
Kelvin Tan
kelvin.tan@santaferelo.com
General Manager, China
Santa Fe Relocation
