European Chamber Statement on the Extension of China’s IIT Policy for Foreign Nationals Go back »

2023-08-28 | All chapters

The four-year extension of the individual income tax (IIT) regime for foreign nationals, under which certain expenses—including housing, children’s education and language training—are treated as non-taxable is very positive news. Having continually advocated this issue at all levels of government, the European Chamber believes it can help to stem the outflow of foreign talent that has taken place over the last few years. Announced on the margins of the start of the new school year, it will be extremely welcome news for families that have made the decision either to come to or remain in China.

This announcement comes on the heels of the Opinions of the State Council on Further Optimising the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment (Opinions). Given that the Opinions implied that an extension to China’s IIT regime for foreign nationals would be forthcoming, the European Chamber is hopeful that further concrete measures will now be taken to implement the other points contained in this document.

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