Social Security Exemptions China

Under a tax treaty to which the People’s Republic of China (PRC) is a contracting party, PRC tax residents and foreign tax residents may be able to benefit from foreign tax relief and exemption or a reduction in tax in the PRC. Social security agreements, also known as totalization agreements, have the purpose of avoiding double taxation income with respect to social security taxes. In other words, the totalization agreements eliminate dual Social Security taxation when a worker from one country works in another country and is required to pay Social Security taxes in both countries on the same earnings.

IIT Preferential Treatment

According to China’s existing Individual Income Tax (IIT) law, which came into effect on 1 January 2019, expatriates in China can continue to claim these tax-exempt expatriate allowances until the end of the transition period, ending 31 December 2021.

Income Tax in China

We provide an overview of everything you need to know about China’s Individual Income Tax system.

Custom Duty Rate Reduction China

China has as of Dec 1st 2017 reduced its import duty rates for a wide array of consumer products as part of its trade liberalization.