Tax Exemption for Foreigners Extended to 2027

Positive news For a further two years, through December 31, 2027, foreign workers in China may continue to benefit from tax exemption on eight categories of fringe benefits, including rent, child-related expenses, and language-learning expenses.

The following is the policy on individual income tax on subsidies for foreign individuals, which will help reduce the tax burden on taxpayers even more:

Foreigners who meet the requirements to become residents may elect to take use of specific supplementary deductions for their individual income taxes or they may elect to take advantage of tax exemptions for benefits like:

  • Housing allowance
  • Language training costs
  • Child-education costs.

A decision made by a foreign person cannot be altered throughout a tax year.