expat income tax in China

China overhauls its individual income tax law


China has enacted its recently revised individual income tax law, a big overhaul of the law over more than 30 years from its inception.

Some of the changes will be set to have an impact on you, either foreigners or oversea Chinese.

1.  New Definition of Tax Residents

In the prior version of the IIT law, a tax resident is one who has domicile within China or otherwise…

Individual Income Tax Liabilities for Expatriates in China


For foreigners lured into China labor market, there are many things for them to ponder over before heading to China soil. One of the critical things that need to be clearly addressed is the tax implication of working in China, namely, whether you need to pay individual income tax in China, and how and how much you need to pay China individual income tax.

For those…

Q&A relating to Individual Income Tax for Foreign Individuals


I. What kinds of foreign individuals shall pay Individual Income Tax (“IIT”) in China?

Pursuant to the PRC IIT Law and its Detailed Implementation Rules:

1.Foreigners, residents of the regions of Hong Kong, Macau and Taiwan (hereinafter referred to as “Foreign Individuals“) who derive income from working or employment with enterprises…