News from Beijing Local Taxation Bureau said that the individual income tax threshold for foreigners working in China has been raised from previous 4,000 yuan to 4,800 yuan, and the new standard is also applicable to compatriots from Hong Kong, Macao SARs and Taiwan province.

In the past, the individual income tax threshold for foreign employees was set at 4,000 yuan and the standard for the additional deduction for expense was 3,200 yuan with the deduction for expenses of 800 yuan.

In the new Regulation for the Implementation of the Individual Income Tax Law, the 3,200 yuan standard for the additional deduction for expense remains unchanged, and the deduction for expenses has been raised by 800 yuan. Therefore, the individual income tax threshold has also been raised by 800 yuan to 4,800 yuan.

According to Beijing Daily, the new regulation clearly sets five categories for additional deduction for expenses: foreign nationals working in foreign investment enterprises and foreign enterprises in the People's Republic of China; foreign experts hired to work in enterprises, institutions, social organizations and government agencies in the People's Republic of China; individuals who are domiciled in the People's Republic of China and derive income from wages and salaries by virtue of their tenure of an office or employment outside the People's Republic of China; other personnel as determined by the Ministry of Finance; and compatriots from Hong Kong, Macao SARs and Taiwan province.

By People's Daily Online