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Changes to Tax-Exempt Benefits for Expatriates in China: How to Prepare for the Transition




Starting next year, foreigners working in China may no longer be entitled to some tax-free fringe benefits (for example, housing rental, children’s education costs, and language training costs). Due to the implementation of the Amended PRC Individual Income Tax (IIT) Law and relevant regulations, certain benefits for foreign workers will be replaced, while other will cease to be exempt from their IIT starting from next year.

The policy change has sparked concerns among foreign individuals as well as their employers. Without doubt, this measure will result in larger tax liabilities for both higher-earning foreign workers and employers. Both foreign individuals and companies are advised to prepare for the transition as early as possible.

In this webinar, Kate Qiu, International HR & Payroll Services Senior Associate, will introduce the upcoming changes to IIT deductions for expats, explain their implications for both individuals and companies, and provide suggestions on how to manage these changes from a tax and HR perspective. Kate will also share similar policies which have already been implemented in the Greater Bay Area as references.

Key Topics:

  • Current Tax-free fringe benefits for expats
  • Changes on IIT Preferential Tax Treatment: End of Expatriate Allowances
  • Impact and changes brought by the amendment of IIT law
  • Measures to prepare for possible transition in the future

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