When handling individual income tax settlement, please pay attention to below particularly important “days” which will affect the amount of your individual income tax.
183 days
This is to determine whether you can calculate personal income tax as a Chinese resident taxpayer in the settelment year.
According to Individual Income Tax Law, foreigners in China who have resided in China for an aggregate of 183 days or more within a tax year are Chinese resident taxpayers. The tax year here is from January 1 to December 31.
6 years
This is the key point for foreign individuals to be exempt from personal income tax in China for the income obtained from outside China.
A foreigner in China who has resided in China for a cumulative period of 183 days but less than six consecutive years shall, after registering in the competent tax authorities, be exempt from paying individual income tax in China on his personal income derived from and paid by outside China.
30 days temporary departure
This is the case in which a year with a full stay of 183 days can be counted again.
If a foreigner leaves China for more than 30 days in a certain leave in which this foreigner has resided in China for 183 days, the consecutive years in which he or she resided in China for 183 days shall be counted again.
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