Policy Information

Under any of the following circumstances, taxpayers shall file tax returns in accordance with the law:

1. To obtain comprehensive income, settlement and payment are required:

2. There is no withholding agent for obtaining taxable income;

3. Obtaining taxable income, but the withholding agent fails to withhold tax;

4. Obtaining overseas income;

5. Cancellation of Chinese registered residence due to emigration abroad:

6. Non resident individuals obtain wages and salaries from two or more sources within China.

Taxpayers can use mobile personal income tax apps or natural person electronic tax bureau web terminals to achieve online declaration, or apply by mail, or directly go to the tax service hall for declaration.

Foreign individual subsidies and allowances exempt from tax

Foreign individuals (including compatriots from Hong Kong, Macao, and Taiwan) receive the following subsidies and are temporarily exempt from personal income tax:

(1) Housing subsidies, food subsidies, relocation expenses, and laundry expenses obtained in a non cash or reimbursed form;

(2) Relocation expenses obtained through actual reimbursement due to employment or resignation in China;

Excluding monthly or regular payments made by employers to foreign employees in the name of relocation fees;

(3) Domestic and foreign travel subsidies obtained according to reasonable standards:

(4) The portion of the family visit fee obtained, which is within a reasonable amount, only refers to the cost of transportation between an individual's place of employment in China and their family location (including the residence of their spouse or parents), and does not exceed twice a year:

(5) The portion of language training fees and children's education subsidies received within the territory of China for language training and children's education within a reasonable amount;

(6) Special circumstances for foreign nationals residing in Hong Kong and Macau due to family reasons to enjoy six subsidies.

Starting from January 1, 2004, foreign individuals (excluding Hong Kong and Macau residents) employed by domestic enterprises in China who reside in Hong Kong and Macau due to family reasons and travel back and forth between the mainland and Hong Kong, Macau and other regions every working day, will receive non cash or actual reimbursement subsidies for housing, meals, laundry, relocation, and other expenses in Hong Kong or Macau from domestic enterprises (including their affiliated enterprises). Those who can provide valid vouchers, After verification and confirmation by the competent tax authority, personal income tax may be exempted. The above-mentioned foreign individuals who receive language training and children's education subsidies in Hong Kong or Macau can be exempted from personal income tax if they can provide valid expenditure vouchers and other materials, and the portion confirmed as reasonable by the competent tax authority after review.

During the period from January 1, 2019 to December 31, 2021, foreign individuals who meet the personal conditions of residents can choose to enjoy special additional deductions for personal income tax, as well as preferential policies such as housing subsidies, language training fees, and children's education fees, but they cannot enjoy them at the same time. Once selected, foreign individuals are not allowed to change within a tax year. Starting from January 1, 2022, foreign individuals will no longer enjoy tax exemption policies for housing subsidies, language training fees, and child education subsidies, and should enjoy special additional deductions according to regulations.

Lump sum payment issued by foreign dispatched units

Foreign workers coming to China shall receive a lump sum payment from the foreign dispatching unit, which includes:

Personal wages, public expenses (postal and telecommunications expenses, office expenses, advertising expenses, necessary communication expenses for business transactions), and living allowances (housing expenses, travel expenses), where the above income can be clearly divided, may only be subject to personal income tax on the portion of salary income according to regulations.

Dividend tax incentives

Foreign individuals (including Hong Kong, Macao, and Taiwan compatriots) are temporarily exempt from personal income tax on dividends and bonus income obtained from foreign-invested enterprises.

Tax exemption for foreign experts' wages and salaries

Foreign experts (including compatriots from Hong Kong, Macao, and Taiwan) who meet one of the following conditions may be exempt from personal income tax on their income from wages and salaries:

(1) Foreign experts directly dispatched by the World Bank to work in China under the World Bank Special Loan Agreement;

(2) Experts directly dispatched by United Nations organizations to work in China;

(3) Experts working for United Nations assistance projects in China

(4) Experts sent by the donor country to work specifically for the country's unpaid aid projects:

(5) According to the cultural exchange project signed by the two governments, cultural and educational experts who have worked in China for less than two years will receive their salaries and wages borne by the country:

(6) According to the international exchange program of Chinese universities and colleges, cultural and educational experts who have worked in China for less than two years will receive their salaries and wages borne by the country:

(7) Experts who come to China to work through private research agreements are paid their salaries and wages by government agencies in the country.

Tax exemption on income from stock transfer

Starting from November 17, 2014, personal income tax is temporarily exempted for the transfer price difference income obtained by individual investors in the Hong Kong market from investing in A-shares listed on the Shanghai Stock Exchange. Starting from December 5, 2016, personal income tax is temporarily exempted for the transfer price difference income obtained by individual investors in the Hong Kong market from investing in A-shares listed on the Shenzhen Stock Exchange.

Starting from December 18, 2015, the transfer price difference income obtained by individual investors in the Hong Kong market through mutual fund recognition and trading of mainland fund units is temporarily exempt from personal income tax.