Chinese Finance Ministry and State Administration of Taxation issued  2 notices on December 31st, 2021, stating to extend the implementation of 5 preferential policies for Individual Income Tax, the detailed regulations are as following：

1. Preferential policy of Individual Income Tax for foreigner’s subsidies/allowances will be extended to December 31st, 2023.
   
   
2. Preferential policy of Individual Income Tax regarding tax solely computed for individual’s annual bonus will be extended to December 31st, 2023.
   
   
3. Preferential policy of exemption for Individual’s Annual Individual Income Tax Clearance will be extended to December 31st, 2023.
   
   * The following 3 situations that allow Annual Individual Income Tax Clearance to be exempted:
   
   (1) Taxpayers obligated to pay tax in Annual Individual Income Tax Clearance while their annual comprehensive income fails to exceed RMB120,000.
   
   (2) Taxpayers have tax obligation in Annual Individual Income Tax Clearance at a maximum amount in tax payable of RMB400.
   
   (3) Prepaid taxation has consistency with the amount of tax payable in Annual Individual Income Tax Clearance, or taxpayers who would not apply for the annual individual income tax reimbursement.
   
   
4. Preferential policy of Individual Income Tax regarding sole tax computation for equity-based incentive in listed companies will be extended to December 31st, 2023.
   
   
5. Preferential policy of Individual Income Tax regarding separate tax computation for tenure incentive of principals in central enterprises  will be extended to December 31st, 2023.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advice and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.