IIT: Extension of Preferential Policies till 2027

On August 18, 2023, the Ministry of Finance and the State Administration of Taxation issued the Circular N. 30 based on which the implementation of the current accountable cash-paid allowances and subsidies regime for foreign employees in China is extended until the end of 2027. It was supposed to expire on 31st December 2023.

In addition, on the same day, with the Circular N. 29 the Ministry of Finance and the State Administration of Taxation extended the following preferential policies to the end of 2027, too.

Specifically,

1. If a resident individual obtains a lump-sum bonus for the whole year, in accordance with the provisions of the Circular of the State Administration of Taxation on Adjusting the Method for Calculating and Collecting Individual Income Tax for Individuals Obtaining a One-time Bonus for the Year, etc. (Guo Shui Fa [2005] No. 9), it shall not be incorporated into the comprehensive income of the year, and the amount obtained by dividing the annual lump-sum bonus income by 12 months shall be determined according to the comprehensive income tax rate table after monthly conversion attached to this announcement, and the applicable tax rate and quick deduction shall be determined and the tax will be calculated separately. The calculation formula is:

Tax payable = one-time bonus income for the whole year× applicable tax rate - quick deduction

2. Resident individuals who receive a one-time bonus for the whole year may also choose to incorporate it into the comprehensive income of the current year for tax calculation.

For assistance with these issues, please feel free to contact us.

JESA Investment & Management Co., Ltd.

创建时间：2023-12-05 11:49

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