For the purpose of further reducing the burdens on taxpayers, relevant individual income tax policies with respect to allowances and subsidies for foreign individuals are hereby announced as follows:

I. Foreign individuals qualified as resident individuals may choose to enjoy itemized deductions for specific expenditures of individual income tax, or, in accordance with Circular of the Ministry of Finance and the State Taxation Administration on Issues With Respect to Individual Income Tax Policy (Cai Shui Zi [1994] No.020), Circular of the State Taxation Administration on Issues With Respect to the Implementation of the Individual Income Tax Collection and Exemption for the Relevant Subsidies Received by Foreign Individuals (Guo Shui Fa [1997] No.54), and Circular of the Ministry of Finance and the State Taxation Administration on Individual Income Tax Collection and Exemption of the Hong Kong or Macao Housing Subsidies and Other Subsidies Received by Foreign Individuals (Cai Shui [2004] No.29), to enjoy tax exemptions for housing allowances, language training fees, and children’s education fees, but shall not enjoy the benefits simultaneously. Once selected, the tax preference enjoyed by a foreign individual shall not be changed within one tax year.

II. This announcement shall be valid until December 31, 2027.

It is hereby announced.

                          Ministry of Finance State Taxation Administration

August 18, 2023

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.