Exciting news published at the end of 2021 confirms several key individual income tax preferential policies have been extended.
On December 31, 2021, the Ministry of Finance and the State Taxation Authority jointly released Announcement [2021] No. 42 and Announcement [2021] No. 43 confirming that, to lessen individuals’ tax burden, they are extending the following key IIT preferential policies that were scheduled to be abolished at the end of 2021
> Policy on tax-exempt benefits for expatriates extended to the end of 2023
> Preferential tax treatment for annual bonus extended to the end of 2023
> Tax-exempt policy for the situations (i) where resident taxpayers’ annual comprehensive income is up to RMB 120,000 with the additional tax to be paid through the annual self-declaration and (ii) where additional tax to be paid through the annual self-declaration is up to RMB 400, extended to the end of 2023
> Preferential tax treatment for equity-based incentives of listed companies extended to the end of 2022