Ministry of Finance and State Administration of Taxation announced circular on Issues concerning the Connection of Relevant Preferential Policies after the Revision of the Law on Individual Income Tax (Cai Shui  No. 164, hereinafter as Circular No.164), which clarifies the transition of preferential individual income tax (IIT) policies, including the exemption of certain benefits in kind to expatriate employees working in China.
Circular No.164 states that during the 3-year transition period (from January 1, 2019 to December 31, 2021), expatriates that are qualified residents may opt to claim special deductions, or the current exemption of IIT on benefits in kind including housing allowance, language training and children education fees. However, such special deduction and exemption of IIT on benefits in kid cannot be claimed concurrently. With effect from 1 January 2022, expatriates can only claim the special deductions. The tax treatment of other currently IIT-exempted items (including the benefits in kind of food, laundry, relocation, business travel and home visit) is also worth discussing.
Please join us on April 22nd to hear briefings from Deloitte tax expert Elaine Xing, Director of Deloitte Tianjin, about the new regulations of the Individual Income Tax Law for non-china domiciled individuals. You will learn:
1. Brief on updates of new IIT Law
2. Changes on preferential policies of IIT exemption on benefits in kind to expatriates
3. Impacts on IIT treatment of expatriates
4. Feasible options that employers and expatriates may consider
5. Other relevant preferential tax policies
AmCham China, Tianjin's monthly executive breakfast is a great opportunity to meet the members of the Executive Committee and become involved in the Tianjin professional community. Network and share information with your fellow members, while enjoying a delicious breakfast at a great price.