With the newly revised Individual Income Tax Law of the People's Republic of China (the "New Individual Income Tax Law") officially coming into effect on January 1, 2019, to ensure a smooth transition between the old and new tax systems, On December 27, 2018, the Ministry of Finance and the State Administration of Taxation issued the Notice on Issues Relating to Transition of Preferential Policies following the Revision of the Individual Income Tax Law (Cai Shui [2018] No. 164), which clarified the applicability and application period of certain individual income tax policies after the implementation of the new Individual Income Tax Law. As some policies are given the application period, we usually understand them as the transitional policies of individual income tax. 

Since then, according to the implementation of the policy and the development and change of the market environment and other factors, the state has extended the application period of some transitional policies of individual income tax. Recently, On August 18, 2023, the Ministry of Finance and the State Administration of Taxation issued the following three individual income tax preferential policies respectively which further extended the application period to December 31, 2027, the Announcement on Continued Implementation of Individual Income Tax Policies for Annual One-off Bonus (Announcement [2023] No. 30), the Announcement on Continued Implementation of Individual Income Tax Policies for Subsidies and Allowances for Foreign Individuals (Announcement [2023] No. 29) and Announcement on Continued Implementation of Individual Income Tax Policies Relating to Equity Incentives of Listed Companies (Announcement [2023] No. 25). This will undoubtedly be very good news for taxpayers who are in the process of recovery in the "post-epidemic" period. 

Therefore we sort out the above three tax policies to help enterprises and individual taxpayers understanding the relevant content of policy. Enterprises can attract, retain and motivate outstanding talents through reasonable planning and application of relevant preferential tax policies, so as to promote long-term, stable and sustainable development of enterprises.