Earlier this year, the Ministry of Finance and Guangdong Province issued documents separately, clarifying the framework and principles of talent definition and the individual income tax (IIT) preferential treatments in the Greater Bay Area (GBA).
As such, the common concerns are: which IIT preferential policies are available to expats working in the GBA? How can companies and individuals take advantage of these tax preferential policies?
With the ongoing IIT reform, both businesses and individuals are facing new challenges in terms of IIT exposure and cost control. Under the new IIT law, which fringe benefits for expats can still be exempt? How can businesses adjust such exempted benefits in order to comply with the new IIT law?
Business decisions on these issues will directly affect a company's ability to attract and retain expat talent, and thus it is crucial that businesses operating in the GBA understand the changes in tax treatments. We are grateful to have invited two experts from KPMG China with extensive experience in this area, Daniel Hui and Kate Lai, to share their insights on IIT, specifically for companies that employ expats, at a Chamber roundtable luncheon on 1 November.
- Interpretation of GBA talent policies and IIT preferential policies
- Tax-free fringe benefits available to expats under the new IIT law
- Common tax treatment for tax-free fringe benefits under the new law
- Common pitfalls in tax planning and in designing tax-free fringe benefits