The American Chamber of Commerce in China (AmCham China) welcomes both the State Council’s announcement on December 29, 2021, that bonuses will continue to be taxed separately at a preferential rate until the end of 2023, and the two-year extension of non-taxable allowances jointly announced by the Ministry of Finance and the State Administration of Taxation on December 31, 2021.
AmCham China has advocated tirelessly for the past three years for the extension of non-taxable allowances for expatriate employees at the central and local levels. These non-taxable allowances, which include housing, education, and language training, had been set to become fully taxable in 2022. This was a top AmCham China member concern, expected to result in a further decrease of international assignments to China.
“AmCham China welcomes and appreciates both of these decisions, which helps companies better retain and attract certain critical expatriate employees, while managing operational costs,” said Colm Rafferty, AmCham China Chairman. “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.”
About AmCham China – US-China Business: The Next 100 Years
The American Chamber of Commerce in the People’s Republic of China (AmCham China) is a non-profit, non-governmental organization whose membership comprises tens of thousands of individuals from nearly 1,000 companies operating across China.
The Chamber’s nationwide mission is to help American companies succeed in China through advocacy, networking, insights, and business support services. AmCham China is officially registered as a foreign chamber of commerce in China and is licensed by China’s government to represent American business in mainland China. In addition to our headquarters in Beijing, AmCham China serves Tianjin, Central China, and Northeast China through our Chapters in Tianjin, Dalian, Shenyang, and Wuhan. Across the five offices, AmCham China has more than 30 working groups, and holds more than 150 events each year.
For more information, please contact: Mark Dreyer, Marketing & Communications Director, AmCham China email@example.com