These benefits are usually not included in the salary and wages but are paid on a reimbursement and non-cash basis. They can be exempted from IIT provided that the expenses are reasonable in amount and there are corresponding supporting documents, such as invoices (fapiao<\/em><\/a>), for each expense. In addition, there are some specific requirements for each category. For example, for home leave expenses, only two trips per year for the expat from China to their or their spouse\u2019s home country can be exempt from IIT.<\/p>\n Many analysts were confident that the policy would be extended beyond the previous deadline of 31 December 2023, especially since the economy is showing signs of a slowdown and the government is attempting to reduce the tax burden on the middle classes to encourage consumer spending. Nevertheless, the extension has come as a relief for foreign workers, who would have seen their personal tax burden increase significantly, especially in terms of the cost of educating their children (tuition fees at international schools in first-tier cities can be up to \u00a338,000 per year). It will also benefit companies trying to increase their hiring of foreign talent<\/a> now that China\u2019s borders are fully open post-Covid.<\/p>\n![\"launchpad](\"https:\/\/focus.cbbc.org\/wp-content\/uploads\/2021\/03\/lp-gateway.png\")
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