deen
deen

China News. Postponed but not cancelled: Changes in tax law for expats – extension of the transition period

A three-year transition period during which expats in China could benefit from special tax-free benefits was to end on 31 December 2021.

Based on a notice from the Chinese Ministry of Finance and the State Administration of Taxation dated 27 December 2018, expats were to be treated equally with Chinese employees after the end of a transitional period.

The implementation of this measure from 01.01.2022 would have far-reaching consequences for foreign employers whose employees work as expats in China.

But employers and the expat community affected can now breathe a sigh of relief for the time being:

Shortly before the expiry of the previous transitional period, the Chinese government has decided to extend this period by another 2 years.

The tax advantages previously granted to expats resident in China will now continue to apply until 31 December 2023.

These include not only the benefits for housing allowance, language training allowance or children education allowance.

The previous separate taxation of the annual bonus / one-off annual special payment will also not be abolished for the time being, but will be maintained until 31 December 2023.

But: Postponed is not cancelled.

If the legal situation does not change by the end of 2023, the decision-makers and HR personnel involved will have to prepare for the changes that will then apply from 2024 and take them into account when planning existing or future assignments.

Contact us if you would like additional information.

We are happy to be at your disposal as a competent partner for assignments, especially to China or worldwide, with our extensive, long-standing experience in international HR management.

 

Please contact us if you would like further information on this topic or on fundamental questions regarding international personnel assignments.

 

Source:

GTAI, Chinese authorities, own research.

Related Posts

Hungary News

New reporting portal The Hungarian authorities have been providing a new website on the posting of workers to Hungary (Posted Workers Directive – PWD) since March 1, 2024. This new interface will be used to...
Work Permit Arbeitserlaubnis Schriftzug

News Blue Card EU

New regulations for the EU Blue Card came into force on November 18, 2023 You are cordially invited to find out and exchange information about the further legal changes regarding the immigration of skilled workers...

Latest blogs on global assignments

New travel authorization system for Israel
17. January 2025
Immigration of skilled workers to Germany
16. December 2024
Family-friendly Global Mobility: Support for expat children
28. November 2024
European regulation on the EU reporting portal
25. November 2024
Important change in the US visa application process from October 2024
18. October 2024
New Zealand: Visa fees will increase
29. August 2024

Get the latest information on "International Personnel Management - assignments worldwide".