Announcement on Extending IIT-related Policies for Expat Individuals

No. 29 Announcement in 2023 by the Ministry of Finance and State Administration of TaxationIn order to further reduce the burden of taxpayers, the announcement of the individual income tax policy on allowances and subsidies for expatriate individuals is hereby released: 
I.The expatriate individuals who are residents in China may opt to claim the additional itemized individual income tax deductions or enjoy the existing preferential policies of tax exemption for allowances related to housing subsidies, language training fees, and children's education fees in accordance with the Circular of the Ministry of Finance and the State Administraiton of Taxation on Some Policy Issues on Personal Income Tax (Cai Shui Zi [1994] No.20), the Circular of the Ministry of Finance and the State Administration of Taxation on the Implementation of Individual Income Tax Exemption for Foreign Individuals with Relevant Subsidies (Guo Shui Fa [1997] No.54) and the Circular of the Ministry of Finance and the State Administration of Taxation on the Exemption of Individual Income Tax for Foreign Individuals Obtaining Housing Subsidies in Hong Kong and Macao SAR (Cai Shui [2004] No. 29). Once an option is made, it may not be changed within a tax year. II. This announcement is enforced until December 31, 2027. This announcement is made by the Ministry of Finance and State Administration of Taxation.

Date：August 18, 2023