Expatriates have a choice of two personal tax benefits: tax exemption for allowances or special additional deductions

In order to further reduce the burden on taxpayers, the policy of individual income tax related to subsidies for foreign individuals is hereby announced as follows: 1、 Foreign individuals who meet the personal conditions of residents can choose to enjoy the special additional deduction of personal income tax, or they can choose to follow the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues of Personal Income Tax" (Cai Shui Zi [1994] No. 020) According to the Notice of the State Administration of Taxation on the Implementation of Individual Income Tax Exemption for Foreign Individuals Obtaining Subsidies (Guo Shui Fa [1997] No. 54) and the Notice of the Ministry of Finance and the State Administration of Taxation on the Exemption of Individual Income Tax for Foreign Individuals Obtaining Housing and Other Subsidies in Hong Kong and Macao Regions (Cai Shui [2004] No. 29), they are entitled to tax exemption policies for housing subsidies, language training fees, children's education fees, and other subsidies, but cannot be enjoyed simultaneously. Once selected, foreign individuals are not allowed to change within a tax year. 2、 This announcement will be implemented until December 31, 2027. Hereby announced. Ministry of Finance, State Administration of Taxation August 18, 2023