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China Income Tax for Individuals
Oct 24, 2016

China Income Tax for Individuals
Foreign nationals residing in China for less than one year are only subject to income tax originated in China. If the individual resides in China for less than 90 days in a calendar year, then all remuneration from foreign employers is exempt from tax if the the employer is not established in China. This 90-day period can be extended to 183 days if the individual protected under a relevant tax treaty or tax arrangement.

Foreigners in China with foreign employers can reduce their China Individual Income Tax (IIT) liability and be taxed based on the actual number of days residing in China under certain conditions (Contact ChinaLegalExpress to see if you meet those conditions).

Foreigners who do not domicile in China but reside in China between one to five years may pay tax only on their income sourced in China, with approval. However, they will be taxed on their worldwide income for each full year residing in China from the sixth year onward.

Individual income tax rates for employment
Income from wages and salaries is taxed according to progressive rates, ranging from 3% to 45%:



* Monthly taxable income is calculated after a monthly standard deduction of RMB 3,500. For foreigners working in China (including residents of Hong Kong, Taiwan and Macau), the standard monthly deduction is RMB 4,800.

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