Expat Tax-Free Allowances Extended to 2023

The Ministry of Finance and the State Administration of Taxation issued on December 31, 2021, the Circular [2021] no. 43 on the Continuation of the Preferential Policies on Individual Income Taxes such as Foreign Personal Allowances and Subsidies.


Circular no. 43 extended the implementation of the preferential policy on tax-free allowances and subsidies for foreign individuals, repealing the provisions included in Circular [2018] no. 164 issued in 2018.


Foreign employees working in China can continue to enjoy preferential tax-exemption policies for housing subsidies, language training expenses and children’s education expenses until the end of 2023.

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