The Individual Income Tax Law (IIT) came into force on 1 January 1994. IIT is levied on individuals qualifying as resident for purposes of taxation. Generally, tax liability is dependent upon the period of time an individual spends in China and the source of that individual's income. For individuals resident in China less than 90 days: exemption from IIT is available where employment income is paid by an overseas establishment. Where the remuneration is paid by a China establishment, that part of employment income derived from working in China will be taxable. Where an individual is a resident of a country which has signed a double taxation avoidance treaty with China, in some cases the 90-day exemption period may apply for up to 183 days.

Individuals resident more than 90 days in China but less than a year, are subject to tax on their China-source income. However, a foreign individual who is a director, general manager or deputy general manager of a China-based enterprise is also subject to IIT on foreign-source income for services performed outside China. Individuals resident in China for more than a year, but less than five years, are subject to tax on both China-source and foreign-source income that is remitted to China. Finally, individuals resident in China for over five years are subject to tax on worldwide income, irrespective of whether the income is remitted to China.

Here you will find the official Provisional Regulations of China on Value-added Tax. Browse the articles to get this information.

Here you will find the official Income Tax Law of PR of China for Enterprises with Foreign Investment and Foreign Enterprise. Browse the articles to get this information.