Tax Exemption for Foreigners

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According to international conventions, bilateral agreements and the principle of reciprocity, the Chinese Government accords tax exemption to foreign diplomatic personnel except for the following items:

1. Dues and taxes that have been normally incorporated in the price of goods or services;

2. Levies on the private real estate within the Chinese territory, excluding the premises for diplomatic and consular missions;

3. Inheritance-related duties; but if a diplomat dies, his movable property in China is exempted form duties and taxes;

4. Foreign diplomats' income that is not derived from their missions in China.

( October 16, 2006)

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