Tax law postponement benefits expats

Foreign employees in China have received an unexpected New Year’s gift: The tax law change has been postponed for the time being. Companies now have more time to adjust to the higher costs. Nevertheless, new regulations still have a negative impact on China as a business location.

The end of tax breaks for foreigners living in China is a much-discussed topic in the expat community. The State Council under Li Keqiang has now decided to extend the transition period until the end of the new year (China.Table reported). Accordingly, last year’s rules will continue to apply in 2022. But postponed doesn’t mean canceled. As planned, the tax law will be aligned with regulations for nationals in 2023.

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