Dear Customers,
On 31 December 2021, China Ministry of Finance and State Administration of Taxation made [2021] No. 42 and [2021] No.43 announcement regarding extension of some China tax preferential policies in order to further reduce the burden on taxpayers.
The relevant IIT preferential policies were summarized as follows:
1. Year-end bonus
The existing preferential policy for year-end bonus tax per [2018] No. 164 announcement stipulated by China Ministry of Finance and State Administration of Taxation would be extended to 31 December 2023.
2. Tax for stock/equity income
The existing preferential policy for stock/ equity tax per [2018] No. 164 announcement stipulated by China Ministry of Finance and State Administration of Taxation would be extended to 31 December 2022.
3. Tax exemption policy for foreign individuals
The existing preferential tax exemption policy for foreign individuals per [2018] No. 164 announcement stipulated by China Ministry of Finance and State Administration of Taxation would be extended to 31 December 2023.
For any further information, please feel free to contact us if you have any question.