Tax Q&A for Residents and Foreigners

Can resident individuals get overseas income from regions or countries offset from their domestic individual income tax?

The amount of income tax paid outside China in accordance with the tax laws of the country (region) of origin of the income of a resident individual in a tax year is allowed to be offset against the tax payable in that tax year within the credit limit.
What does creditable foreign income tax refer to? What is not included in creditable foreign income tax?
Creditable foreign income tax refers to the amount of income tax that should be paid and has actually been paid in accordance with the tax laws of the country (region) of origin of the income of a resident individual who has obtained income from abroad.
The amount of creditable foreign income tax does not include the amount of foreign income tax that should not be levied in accordance with the tax provisions of the agreements for the avoidance of double taxation signed by the Chinese government and the arrangements for the avoidance of double taxation signed between the Chinese mainland, Hong Kong and Macau.
Are there any individual income tax benefits for international students under the Talent Introduction Program?
Living allowances and scholarships received by foreign students in China are not considered as wages and salaries and, therefore, not subject to individual income tax.
Do individuals need to pay individual income tax if they receive one-time compensation for the termination of a labor contract?
Individual income tax shall be exempted for the part of the one-time compensation income (including economic compensation, living allowance and other subsidies issued by the employer) obtained from termination of the labor relationship between the individual and the employer, which is less than three times the average salary of local employees in the previous year. The part of the amount exceeding three times shall not be entered into the comprehensive income of the current year, and the comprehensive income tax rate table shall be applied separately for calculation and tax payment.
Who will deduct resident individuals' income tax if they are sent to work abroad?
Where a resident individual is sent abroad by an organization to work, and the income from salary and wages or remuneration for personal services is paid or borne by said organization, if it is a Chinese organization which is serving or employed abroad, this Chinese organization may withhold the tax and entrust the said organization to declare the tax to competent tax authorities.
Are there any individual income tax benefits for foreign individuals investing in crude oil futures?
Until December 31, 2027, foreign individual investors are temporarily exempt from individual income tax on income derived from investments in crude oil and other commodity futures in China that are approved by the State Council.
What is defined as an educational institution under the terms of the Tax Treaty?
Universities, colleges, schools or other government-recognized educational institutions referred to in the provisions of the Tax Treaty refer to schools that implement pre-school education, primary education, secondary education, higher education and special education in China, specifically including kindergartens, general elementary schools, adult elementary schools, general junior high schools, vocational junior high schools, general senior high schools, adult senior high schools, junior high schools, adult junior high schools, vocational senior high schools, technical schools, special education schools, schools for the children of foreigners, general colleges, higher vocational (specialist) colleges and adult higher schools. Schools for children of foreigners, general colleges and universities, higher vocational colleges and universities, and adult colleges and universities. Training institutions are not considered schools.
Source: City News Service