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Tax exemptions for foreigners

  1. Foreign experts
    For the economic, cultural and education experts, who are offered free accommodation, cars and health care by Chinese employers, their personal income tax will only be collected on their salaries.

  2. Foreign aid workers
    For workers from foreign countries coming to China exclusively to help with China’s construction projects, their salary and living allowance paid by Chinese employers or their home countries are both exempted from personal income tax.

  3. Other foreigners working in China
    Apart from the foreign experts and aid workers, other foreigners working in China, whether their salaries are paid by the employers from China, their home countries or both, all should pay the income tax. For those who live in Chinese territory for less than 90 consecutive days, Chinese tax authorities only collect income tax on their salaries paid by Chinese employers and exempt those paid by the employers from their home countries. 

  4. Foreign students
    For foreign students studying in China, their living allowance and scholarshipsare not in the category. of salary and are free from tax.

  5. Foreign workers with lump sum
    Some foreign workers are paid by their boss in their home countries with lump sum, which includes salary, public fund and life allowance. If the sum can be clearly divided into different usages, only the tax on the part of salaries is collected.

  6. Income for relocation
    For foreigners coming to China to work or leave the job to other countries, the relocation income they obtained from the employers will be exempted from personal income tax. They should submit valid proof documents when declaring taxes.

  7. Business trip allowance
    Business trip allowances for traveling to domestic or foreign places will be exempted from personal income tax if they meet the relevant standards.

    When they make tax declaration, they should submit relevant materials such as proof documents of their transport charge and accommodation, as well as their traveling agenda.

  8. Relative visiting allowance
    Relative visiting allowance can be exempted from personal income tax. When making a declaration, they should submit proof of reasonable transport charges, which can only cover the distance between the working place in China and their family place, including spouse or parents’ residence, twice in a year at most.

  9. Education fee                                                                                                                              Foreigners’ personal language training allowances and their children’s education subsidies will be exempted from personal income tax.

    (Translated by Shen Li)


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