China has announced that it will extend preferential income tax policies for foreigners working in the country until the end of 2027. The move is seen as a positive signal to foreign businesses operating in China and aims to attract and retain foreign talent.
Under the extended policies, China will continue to waive taxes on various benefits provided to foreign workers, including subsidies for housing, language training, and children's education. These tax exemptions have been in place for foreign employees and have now been extended for an additional four years.
The European Union Chamber of Commerce in China had previously called for clarification on whether these tax benefits would continue beyond 2021. The extension of the policy is seen as a demonstration of China's commitment to the foreign business community and to Chinese companies that hire foreign nationals.
The decision to extend the tax benefits has been welcomed by the European Chamber, which described it as "very positive news." They believe that the extension will help retain foreign talent in China and stem the outflow of skilled professionals that has been occurring over the past few years. The announcement comes at the start of the new school year, providing a sense of relief for families who have made the decision to either come to or remain in China.
Overall, the extension of the preferential income tax policies for foreigners in China until 2027 is a step towards creating a more favorable environment for foreign businesses and attracting and retaining foreign talent. It showcases China's commitment to being an attractive destination for international professionals, benefiting both the foreign business community and the Chinese economy.