Event Details
Effective January 1, 2022, the current tax-deductible allowance for expatriate workers will be terminated and replaced by the itemized deduction for both expatriates and non-expatriates alike. Due to this change, expatriate workers will no longer be eligible to claim tax exemptions on benefits-in-kind BIK for expenses in the form of housing rent, children's education, language training, home flights, meals & laundry, and relocation expenses. This new policy will increase the tax liability for highly skilled expatriate workers, and will also affect hiring strategies and employee compensation plans for local and foreign employers.
The presentation will highlight:
- New criteria for China's tax residency status
- New 6-year rule
- Tax calculation for comprehensive income
- Keys changes of the PRC Individual Income Tax (IIT) Law for expatriates
- Preferential tax policies
- Suggested actions for the company to take