China Extends Certain Individual Income Tax Preferential Policies

China's Ministry of Finance and State Administration of Taxation have jointly issued three announcements that extend the implementation of certain individual income tax preferential policies. This includes the following:

Announcement No. 30 of 2023, which provides that the exclusion of annual year-end bonuses in calculating monthly salary income is extended until the end of 2027 (from 2023), with bonuses taxed according to a separate calculation, which is essentially meant to prevent bonuse…