The existing China “expat tax concession policy” which exempts certain fringe benefits received by foreign employees in China from PRC personal income tax will come to an end on 31 December 2021. At this juncture, it is likely that the policy will be left to expire and not be renewed or updated. This means that there will be a significant financial impact on expatriates currently benefitting from the preferential regime.

While the year-end draws near, we highlighted the key action plan for your considerations.