Announcement of the Ministry of Finance and the State Administration of Taxation on the Continuation of the Individual Income Tax Policy on Allowances and Subsidies for Expatriates

Announcement of the Ministry of Finance and the State Administration of Taxation on the Continuation of the Individual Income Tax Policy on Allowances and Subsidies for Expatriates

Announcement of the Ministry of Finance and the State Administration of Taxation No. 29 of 2023

In order to further reduce the burden of taxpayers, the following is the announcement on the extension of the individual income tax policy on allowances and subsidies for foreign individuals:

I. If foreign individuals meet the conditions of resident individuals, they can choose to enjoy special additional deduction for individual income tax, or they can choose to follow the Notice of the Ministry of Finance and the State Administration of Taxation on Certain Policy Issues of Individual Income Tax (Cai Shui Zi [1994] No. 020), the Notice of the State Administration of Taxation on the Implementation of Individual Income Tax Exemption and Exemption of Subsidies Acquired by Foreign Individuals (Guoshifa [1997] No. 54), and the Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Individual Income Tax on Subsidies Acquired by Foreign Individuals. No. 54) and the Circular of the Ministry of Finance and the State Administration of Taxation on the Implementation of Issues Concerning the Exemption and Immunity from Individual Income Tax of Foreign Individuals Acquiring Subsidies Related to Housing in Hong Kong and Macao (Cai Shui [2004] No. 29), foreign individuals are entitled to the preferential policy of tax exemption for allowances related to housing subsidies, language training fees, and children's education fees, but not at the same time. Once a foreign individual has made a choice, no change is allowed within one tax year.

II. This announcement is enforced until December 31, 2027.

This announcement is hereby made.

Ministry of Finance
General Administration of Taxation
August 18, 2023

Source：zhejiang.chinatax.gov.cn