On December 31, 2021, a joint notice from the Ministry of Finance (MOF) and the State Administration of Taxation (STA) announced that the previous preferential policies related to the Individual Income Tax (IIT) filing for foreign individuals would be extended for two years to December 31, 2023, rather than ending on January 1, 2022, as originally announced. In addition, on December 29, 2021, the State Council announced that all employee bonuses will continue to be taxed separately at a preferential rate until the end of 2023. AmCham China welcomes and appreciates both of these decisions, which help companies better retain and attract certain critical expatriate employees while managing operational costs. In doing so, this helps China to attract foreign investment while also ensuring that the best talent, from local and abroad, can participate in this dynamic and growing economy.
Key meetings and advocacy actions taken on addressing IIT issues
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