FAQs about personal income tax

Who pays individual income tax?
If you have a domicile in China or have no domicile but have resided in China for a cumulative period of 183 days within a tax year, you will be identified as a Chinese tax resident and need to pay individual income tax on income earned from within and outside the territory of the PRC.
If you have not resided in China for a cumulative period of 183 days within a tax year, you will be identified as a non-resident individual who needs to pay individual income tax on income earned from within the territory of the PRC.

How to file taxes?
Foreigners residing in China who collect employment wages, labor remuneration, royalties, and franchise fees within the tax year must file the Annual Self-declaration Form for Individual Income Tax with the tax authorities between March 1 and June 30 of the following year and settle the comprehensive income tax.
Foreigners who are non-resident individuals are not required to settle comprehensive income tax.
China has signed agreements to avoid double taxation with 114 countries and regions. Expats eligible for tax reductions or exemptions as stipulated in the agreements can determine whether they meet the conditions to enjoy the benefits of these treaties.

How much should I pay?
The Individual Income Tax system in China is based on a progressive tax rate system, meaning that the tax rate increases as the taxable income increases.

Personal Income Tax Rates (Yearly Income)
(Applicable to Chinese tax residents)

Personal Income Tax Rates (Monthly Income)
(Applicable to non-resident individuals.)

Taxable income = (Total income) – (Initial deduction) – (Special additional deduction/Tax-deductible allowance (especially for foreigners)
Tax payable = (Taxable income * Tax rate) – (quick deduction)

Tax benefits
From Jan 1, 2019 to Dec 31, 2027, expats who are Chinese tax residents may choose to enjoy special additional deductions of individual income tax or the tax-free treatment of housing subsidies, language training and children's education fees.
From Jan 1, 2028, expats will no longer be able to enjoy the tax-free treatment of housing subsidies, language training and children's education fees.
Wages and salaries earned by foreign experts who meet certain conditions may be exempt from individual income tax.
For further inquiries regarding tax services, please contact Nanjing's tax hotline at 12366.