China’s expat tax relief extension a ‘real victory’, could stem foreign talent drain as Beijing seeks overseas capital

Expats living in China will continue to enjoy tax waivers on rent, language training and children’s education, the Ministry of Finance said on Monday

The benefits have been extended until the end of 2027 as Beijing pushes to attract more foreign capital amid China’s overall economic slowdown

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Beijing has struggled to build foreign business confidence and boost overseas investment amid its post-pandemic economic recovery. Photo: Simon Song

Published: 1:01pm, 29 Aug 2023Updated: 4:20pm, 29 Aug 2023

China’s extension of tax exemptions for expatriates could help curb a mass exodus of foreign talents and companies, said foreign business groups.

Overseas taxpayers will continue to enjoy tax waivers on rent, language training and children’s education, the Ministry of Finance said on Monday.

The individual income tax benefits for expats, which were set to expire at the end of the year, have been extended until the end of 2027.

The European Chamber of Commerce in China described the extension as “very positive news” and said it would “help to stem the outflow of foreign talent that has taken place over the last few years”.

It will be extremely welcome news for families that have made the decision either to come to or remain in China

European Chamber of Commerce in China

“Announced on the margins of the start of the new school year, it will be extremely welcome news for families that have made the decision either to come to or remain in China,” the chamber said.