Tips about tax incentives for foreigners in China
The following categories of the benefits-in-kind obtained by foreign individuals(including compatriots from Hong Kong,Macao and Taiwan)working in China can currently enjoy tax exemption:
Fringe benefits for housing expenses,meal costs,relocation fee,and laundy expenses obtained in the form of non-cash or actual reimbursement.The relocation fee refers to the relocation fee obtained in the form of actual reimbursement due to the employment or resignation in China,excluding the monthly or regular fee paid by the employer to the foreign employee in the name of relocation fee.
Domestic and overseas business trip subsidies obtained according to reasonable standards;
Remeber to keep relevant valid certification materials:
tickets,forms,certificates,slips,documents,and receipts.For example,invoices,reimbusement forms,tax certificates,itineraries or financial receipts that you obtained during your business trip.
The Fringe benefits obtained for family visit fee,and the part within a reasonable amount.”Reasonable amount”only refers to the transportation costs between the individual’s place of employment in our country and the location of his or her family (including the residence place of his or her spouse or parents)and not more than twice a year;
However,please note that
1.it is limited to the fees generated by the employees to visit their families,while the fees generated by their family members for coming China to visi the employees are excluded;
2.it must be between the residence place of the employment in China and his or her family’s location.Other overseas travels are not allowed.
3.the employees can enjoy such fringe benefits twice a year at most;
4.provide the proof of travel expenses(photocopy)for visiting relatives.
All of the above conditions should be satisfied.
The fringe benefits obtained for language training fee and the children’s education expenses as well as their language training fee in China.The part of these costs should be within a reasonable amount;
*Only be language training, and domestic training only.
About special additional deductions
A resident individual can eihter choose to enjoy the six additional itemized deductions,or can choose the above-mentioned policy of tax-exempt benefits-in-kind.However,you only choose one of the two policies to enjoy.Once selected,it cannot be changed within one year.
