Announcement on Continued Implementation of Individual Income Tax Policies for Subsidies and Allowances for Foreign Individuals
Announcement [2023] No. 29 of the Ministry of Finance and the State Taxation Administration
For the purposes of further reducing taxpayers' burden, announcement is hereby made on individual income tax policies for subsidies and allowances for foreign individuals as follows:
1. Foreign individuals who satisfy the criteria for resident individuals may opt to claim special additional deduction for individual income tax, or opt to enjoy tax exemption policies for subsidies and allowances such as housing allowance, language class fees, children education fee etc. stipulated in the Notice of the Ministry of Finance and the State Taxation Administration on Several Issues Relating to Individual Income Tax Policies (Cai Shui Zi [1994] No. 020), the Notice of the State Taxation Administration on Issues Relating to the Implementation of Exemption of Individual Income Tax on Allowances of Foreign Individuals (Guo Shui Fa [1997] No. 54) and the Notice of the Ministry of Finance and the State Taxation Administration on Levying and Exemption of Individual Income Tax on Housing and Other Subsidies Received by Foreign Individuals in Hong Kong and Macau (Cai Shui [2004] No. 29), but shall not claim special additional deduction and tax exemption incentives concurrently. The option made by a foreign individual shall not be changed within a tax year.
II. This Announcement shall remain effective until 31 December 2027.
Ministry of Finance
State Taxation Administration
18 August 2023
