A three-year transition period during which expats in China could benefit from special tax-free benefits was to end on 31 December 2021.<\/p>\n
<\/p>\n
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.<\/p>\n
The implementation of this measure from 01.01.2022 would have far-reaching consequences for foreign employers whose employees work as expats in China.<\/p>\n
But employers and the expat community affected can now breathe a sigh of relief for the time being:<\/p>\n
Shortly before the expiry of the previous transitional period, the Chinese government has decided to extend this period by another 2 years.<\/p>\n
The tax advantages previously granted to expats resident in China will now continue to apply until 31 December 2023.<\/p>\n
These include not only the benefits for housing allowance, language training allowance or children education allowance.<\/p>\n
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.<\/p>\n
But: Postponed is not cancelled.<\/p>\n
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.<\/p>\n
Contact us if you would like additional information.<\/p>\n
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.<\/p>\n
<\/p>\n
Please contact us if you would like further information on this topic or on fundamental questions regarding international personnel assignments.<\/p>\n
<\/p>\n
Source:<\/p>\n
GTAI, Chinese authorities, own research.<\/p>\n","protected":false},"excerpt":{"rendered":"
A three-year transition period during which expats in China could benefit from special tax-free benefits was to end on 31 December 2021.<\/p>\n","protected":false},"author":3,"featured_media":9939,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[415],"tags":[776,1388,438,1666,1576,1578,1489,528,1158,1665,1663,1664,527],"class_list":["post-10590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-abroad","tag-business-trips-abroad","tag-entsendung-en","tag-expat-china-en","tag-global-mobility-en","tag-global-working-en","tag-posting-abroad","tag-regulation","tag-service-provision","tag-tax-law","tag-tax-law-china","tag-tax-law-expat-china","tag-working-abroad"],"yoast_head":"\n