BEIJING, Dec. 26 (Xinhua) -- Taiwan compatriots will enjoy further preferential treatment on individual income tax after a new regulation issued by the Chinese mainland takes effect on Jan. 1, 2019, a spokesperson said Wednesday.

Before the individual income tax law was revised, people overseas, including Taiwan compatriots, who have lived on the Chinese mainland for one to five years and have no houses on the mainland, are exempt from the tax of overseas income gained outside the mainland, said Ma Xiaoguang, spokesperson for the State Council's Taiwan Affairs Office, at a press conference.

People overseas only pay individual income tax based on their income gained from the mainland and overseas income gained from payment on the mainland, Ma said.

According to the amended regulation for the implementation of the individual income tax law, the exemption period will be extended from five years to six years.

As the mainland's business environment further optimizes, Taiwan-funded enterprises will have more development opportunities and Taiwan compatriots will enjoy better conditions and treatment for investment, living, employment and starting businesses, Ma added.