Eight Allowances Exempted from Personal Income Tax 2.0

Tax policies expats must know in China.您的非常满意，

是我们的无限动力！

中国境内的外国朋友们，又见面了

Foreign friends in China, nice to meet you again

上篇小编给大家讲解了一下外籍人士八项补贴个税优惠的内容和具体需要提供的资料，相信大家已经有了初步的认知。

In the previous passage of our Wechat, we have introduced the basic content of the policy of eight allowances for foreigners in China and the required materials for application. I believe that you may have a preliminary understanding.

今天~

Today~

小编打算给大家分享一些相关的小贴士

we’re going to share some tips 

on this policy 

（这些都是人家问我好几遍的问题嗷）

(All of these are the questions that we’ve been asked quite frequently)

相信不少聪明的小伙伴已经早早从外籍人士八项补贴个税优惠，联想到个人所得税专项扣除的和津补贴免税优惠政策。

When it comes to the eight allowances for foreigners, many friends might have already thought of the policy of personal income tax deduction and the policy of tax exemption.

不用手握放大镜来找寻“蛛丝马迹”

认真看看下文一下子就会明白它们的区别啦

With this passage, you no longer need to think about the differences over and over, just read it and you’ll figure out the answers

首先 / First of all

外籍人员在华享受的补贴有 8 种 ，而专项附加扣除只有 6 种 ，而且只有部分下图所示的补贴才有对应的竞合关系。

There’re eight types of allowances for foreigners in China to enjoy , but for the policy of special additional deductions, there’re only six categories for foreigners to apply, the table below shows the similar entries between the policy of eight allowances and special additional deductions.

                       

外籍人员补贴 Allowances for Foreigners	专项附加扣除 Special Additional Deductions
子女教育费 Children’s Education Expenses	子女教育 Children’s Education
语言训练费 Language Learning Expenses	继续教育 Continuing Education
住房补贴 Housing Allowances	住房贷款利息或 住房租金专项附加 Interests of Housing Loans or the Additional Rent Deductions for Housing

再来 / Secondly

外籍人士八项补贴个税优惠是

 扣除项目 or 免税项目 ？

Are the eight allowances for foreigners 

deductible items or tax-free items?

外籍人士八项补贴个税优惠，属于免税项目，而不是扣除项目。这和居民个人的6项专项附加扣除不是一个概念。因为8项补贴，通常是外籍个人通过公司报销或者代为支付的所得，将花费转化为公司发放的收入（福利），是外籍个人依法享受免税政策优惠的收入项目。

The policy of eight allowances, different from the policy of six additional deductions, is not a deduction policy but belongs to the tax-free policies. All the eight types of allowances are what the foreigners obtain through reimbursement or payment by their companies. The process is turning the relevant expenses into the income (in the form of allowances) offered by the companies. And for foreign individuals, they can enjoy the preferential tax exemption policy for such kind of income (allowances) according to law.

“二选一”的特别政策

The Two Policies Are Mutually Exclusive

那么，如果外籍个人符合居民个人条件的，能同时享受个人所得税专项附加扣除和津补贴免税优惠政策吗？

Then, if foreign individuals meet the resident conditions, can they enjoy the special additional deduction of individual income tax and the eight tax-exemption allowances at the same time?

概念释义 / Concept Interpretation

成为居民个人的条件就是：在中国境内有住所，或者无住所而一个纳税年度内在中国境内居住累计满一百八十三天的个人。

The conditions for becoming a resident individual are: individuals who have domiciles in China, or individuals who don’t have domiciles but have lived in China for a total of 183 days in a tax year.

答案是不能的。财税[2018]164号文规定，外籍个人符合居民个人条件的，可以选择享受个人所得税专项附加扣除，也可以选择享受津补贴免税优惠政策，但不能同时享受。外籍个人一经选择，在一个纳税年度内不得变更。

The answer is no. According to Finance and Taxation [2018] No. 164, foreign individuals who meet the conditions of individual residents can choose to either enjoy the special additional deduction of individual income tax or the  policy of the eight tax-exemption allowances. The two policies cannot be enjoyed at the same time. Once  a foreign individual has made the choice, the choice cannot be changed within a tax year.

# 举个栗子 / For example #

来深打拼8年的美国友人Tom和老婆Amy在蛇口租住一套公寓，但因工作需求经常出差。Tom想享受外籍人士八项补贴个税优惠中境内、境外出差补贴免税，又想享受住房租金等专项附加扣除政策优惠减免。

Tom, an American who has been working in Shenzhen for 8 years,  has rented an apartment in Shekou with his wife Amy. However, he has frequent business trips for his work. As for the policy of eight allowances, Tom wants to apply for tax exemption for his allowances for business trips (inside and outside China). Meanwhile, he also wants to enjoy the policy of special additional deduction for his rent.

（哒咩×）是行不通的嗷！

这两大项优惠政策是内部不可“拼单”，

不能“remix”，只能单选！

He cannot choose both.
Foreigners cannot make free combinations between the two major policies, namely, they can either to choose the policy of eight allowances for tax exemption or to choose the policy of six special additional deductions.

只能二选一，二选一，二选一！

（重要的事情说三遍）

It’s a single choice! It’s a single choice! It’s a single choice!
【Key information deserves being repeated for three times ;)】

↓↓↓

即：Tom要么选择外籍人士八项补贴个税优惠政策，要么选择以居民个人身份享受个人所得税专项附加扣除和津补贴免税优惠政策

That is to say, Tom can either choose the eight allowances policy for foreigners, or he can enjoy the special additional deductions for individual income tax as a Chinese individual resident.

Emmmm......在小编看来，外籍人士八项补贴个税优惠，更强调免税补贴的合理性。而六项专项附加扣除，有着相对统一的量化标准，能体现个人生活和支出的差异性和个性化需求，简便易行实现精准减税。

Emmmm.... As we see it, the eight tax-exemption allowances for foreigners put more emphasis on the rationality of the allowances. On the other hand, the policy of six special additional deductions for resident individuals has relatively clear and unified quantitative standards,

which can reflect the differences of different people’s living and spending situations, which is more feasible to realize targeted tax deductions.

所以大家可以斟酌一下，再谨慎选择嗷~

Therefore, for foreign friends, please think it over before you make a choice between the two policies.

最后最后

Last but not the least

希望外籍朋友们要注意注意：自2022年1月1日起，外籍个人不再享受住房补贴、语言训练费、子女教育费津补贴免税优惠政策，应按规定享受专项附加扣除。

（其他5项津贴如果无更新文件的话还可以继续享受）

a tip for foreign friends: from January 1, 2022, foreign individuals will no longer enjoy the tax-exemption for housing allowances, language training allowances and children’s education allowances, but will enjoy special additional deductions for the correspondent expenses. 

(Among the eight tax-exemption allowances, the other five types can still be applied by foreign individuals if there’re no updated rules or regulations. )

谢谢你的收看

下回再见啦！See you~

 

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