2025 Latest Guide for Foreign Business Professionals Working in Shanghai – Part 3
1. Don’t Forget to Claim Your Individual Income Tax (IIT) Subsidy
Shanghai will continue to offer the “Financial Subsidy for Overseas High-End Talents” in 2025:
For salaries subject to individual income tax, the portion exceeding 15% will be subsidized by the municipal government based on the actual amount paid—effectively capping the IIT rate at 15%.
For salaries subject to individual income tax, the portion exceeding 15% will be subsidized by the municipal government based on the actual amount paid—effectively capping the IIT rate at 15%.
How to Apply:
Use the international version of the “Suishenban” app (available in English) → Search for “Individual Income Tax Subsidy” → One-click pre-fill. The average processing time for the refund is 12 working days.
Use the international version of the “Suishenban” app (available in English) → Search for “Individual Income Tax Subsidy” → One-click pre-fill. The average processing time for the refund is 12 working days.
Eligibility:
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Hold a Category A work permit
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Annual salary of RMB 600,000 or more
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Have contributed to social insurance in Shanghai for at least 6 months
Important: You must pay your taxes first, then apply for the subsidy—the order cannot be reversed.
2. Social Insurance Isn’t “Paying More”—It’s “Buying Protection”
Many foreign executives ask: “Can I opt out of social insurance?” — The answer is NO, but once enrolled, you immediately enjoy the same benefits as Shanghai residents:
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Medical Insurance: With your social security card, you can swipe directly at top-tier international departments in hospitals like Ruijin and Huashan—no need to pay upfront in cash.
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Housing Fund: Upon resignation and departure from China, you can withdraw the full amount (principal + interest) in one go, transferred to your overseas account at the central exchange rate of the day.
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Maternity Insurance: Male employees whose spouses give birth in Shanghai are eligible for a “spousal paternity allowance” of RMB 8,000.