Tax Risks on Expatriates when Applying for Tax-free Rental Benefits

Expatriates that live and work in China continue to enjoy certain privileges when it comes to individual income tax (IIT) on their income, namely tax-free deductions for rent, relocation, language training, school, and home leave travel. The Chinese government has created these benefits to establish a favorable work environment for foreigners, which has contributed significantly […]

Individual Income Tax (IIT) Deductions for Foreigners Working in China

To create a favorable working environment for foreigners, the Chinese government has rules on tax-free allowances applicable to foreigners working in Mainland China. All foreigners and their employers should be aware of these rules, to ensure that they do not pay more individual income tax (IIT) then they have to.

Fiscal Support Policies in Shanghai

With the current Covid-19 crisis, governments all over the world are implementing policies to support local businesses. In China too, companies can enjoy some relief relating to taxation (incl. tax deferments and increase of export tax rebates) and social insurance contributions, while state-owned landlords are offering rent-relief. However, it is less well-known that many district […]

Major Tax Cuts for Smaller Companies in China

In order to support the country’s main job creators, China’s State Council chaired by Premier Li Keqiang on 9 January 2019 announced that the Chinese government will support the development of micro and small enterprises (MSEs) by introducing major tax cuts. The initiative will be implemented retrospectively from 1 January 2019 and will tentatively last […]

IIT Regulations Clarify the Tax Treatment for Expatriates in China

14 December 2018
In October 2018, China’s Ministry of Finance proposed the draft changes to the Implementing Regulations of the IIT Law, to become effective by January 2019. In many ways these regulations are more important than the IIT Law itself (see our original article on the IIT law here:, as it was the regulations that previously […]