China to extend preferential tax policies for foreigners until end-2023

Lujiazui financial district during sunset in Pudong, Shanghai
People walk in Lujiazui financial district during sunset in Pudong, Shanghai, China July 13, 2021. REUTERS/Aly Song

BEIJING, Jan 1 (Reuters) - China will extend preferential income tax policies for foreigners residing in the country to Dec. 31, 2023, the finance ministry said on Friday, as part of measures to ease the burden on taxpayers.

Previously, China said benefits and allowances for foreigners including housing rental and education for their children would cease to be income tax-exempt starting Jan. 1, 2022.

In recent days, the government has pledged to further cut taxes and fees in 2022 to support struggling businesses. China will also extend some favourable income tax policies to ease the burden for middle- and low-income groups.

Reporting by Ryan Woo; Editing by Kim Coghill

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