Tax
The 183-day rule and a six-year grace period for foreign-sourced income
Individual income tax runs on progressive rates to 45 per cent. Residence turns on 183 days in a calendar year, and a six-year rule limits when a foreign resident's worldwide income becomes taxable.
Key rules
- Jurisdiction — Administered by the State Taxation Administration through provincial bureaus.
- Deadline — Annual IIT reconciliation between 1 March and 30 June following the tax year
- Deadline — Monthly withholding by the 15th of the following month
Governing law
- Individual Income Tax Lawrevised 2018
- Enterprise Income Tax Law2007
- Value Added Tax regulations
In practice
A foreign national who is resident for six consecutive years, without leaving for more than 30 continuous days in any of them, becomes taxable on worldwide income; a single absence of more than 30 days resets the count. Standard enterprise income tax is 25 per cent, reduced to 15 per cent for qualifying high-technology enterprises. VAT applies at 13, 9 and 6 per cent by category. China operates an extensive treaty network, but treaty relief must be claimed with supporting residence certification.