Time of Declaring Tax for Individual Income Tax of Foreign Individual

1. The monthly deducted tax of withholding agent and monthly payable tax of self-reporting taxpayer shall be turned over to the State Treasury at the 7th of next month, and the tax table shall be submitted to the tax authority.

2. The payable tax of production and business income tax of the privately or individually-owned business shall be calculated by annually and pre-paid by monthly (quarterly). The tax shall be prepaid by the taxpayer in 7th of next month and made the final settlement within 3 months after the end of year with refund for any overpayment or a supplemental payment for any deficiency.

3. The payable tax of incomes of contractual operation and leasing operation of the enterprise and public institution shall be calculated by annually and turned over to the State Treasury by the taxpayer within 30 days after the end of year, and the tax table shall be submitted to the tax authority. The taxpayer shall gradually collect the incomes of contractual operation and leasing operation within 1 year and prepay the incomes within 7 days after each collection. The final settlement shall be made within 3 months after the end of year with refund for any overpayment or a supplemental payment for any deficiency.

4. The taxpayer who shall get the income outside China shall turn over the payable tax to the State Treasury within 30 days after the end of year and submit the tax table to the tax authority.

5. The taxpayer with the annual income over 120,000 yuan shall make tax declaration to the competent tax authority within 3 months after the end of year. That is to say the taxpayer shall make tax declaration at any non-public holiday from 1st January to 31st March. When reporting, the taxpayer shall fill in the Tax Table of Individual Income Tax (Applicable for Reporting of Taxpayer with Annual Income over 120,000 yuan) and submit the personal valid identification documents including ID, passport, home visit permit, military card and etc.

 

Self-taxpayment Location of Individual Income Tax of Foreign Individual

 

According to Article 35 and the relevant tax regulations of Regulations on the Implementation of the Individual Income Tax Law of the People’s Republic of China,

1. . The individual income tax shall be withheld and remitted by the withholding agent who shall make tax declaration to the local competent tax authority;

2. The taxpayer by self reporting shall make tax declaration to the local competent tax authority which holds the income;

3. The foreigner working in several places at the same time or the foreigner temporary coming to China to work shall be subject to the date of tax declaration stipulated by the tax law. If it meets the tax declaration in one place, it shall be made the tax declaration. It shall permit the application in one fixed place, after approval, the tax declaration shall be fixed in the place.

 Taxpayers can login www.bs.hnds.gov.cn to find the relevant local tax administrative organs in the section of Tax Payment Guide & Site.

Income Project of Individual Income Tax Paid in China of Foreigner 

In accordance with the stipulation of Article Five of the Law on Personal Income Tax, the income of the foreigner, no matter whether the payment location is within China, shall be regarded as the one gotten in China.

1. The income of position or employment of the enterprise or institution within China;

2. The income by providing individual labor (including design, performance, contest and so on) within China;

3. The income by leasing the property to the lessee within China;

4. The income by transferring the right to use the building and land and the other properties within China;

5. The income by permitting the use of all kinds of concessions;

6. The income by gaining interests, dividend, bonus from the enterprise, company, and other economic organizations or individual within China;

7. The incoming from the contractual operation and leasing operation for the enterprise and public institutions

 

 Which does the foreigner take self-reporting about annual income of 120,000 yuan?

According to regulations, the following foreigners shall make the self-reporting about the annual income of 120,000yuan:

  (1) The foreigner with a domicile within China or without a domicile but living in China about one year with annual income over 120,000 yuan;

  (2) The foreigner with a domicile within China or without a domicile but living in China about one year and getting income beyond China;

  (3) The foreigner gaining income from two positions or more than two positions within China;

  (4) The foreigner getting the taxable income but without the withholding agent;

  (5) Other situations stated by the State Council.

 

Taxpayes can go directly to the hall of the local taxation bureau of each city (district, county) where the Application Form of Paying Personal Income Tax (which is concerning about the one whose annual income exceeds 120000 RMB) is available. Taxpayers can also login the website www.bs.hnds.gov.cn and download the application forms in the section of “Network Office/Download Center/ Forms Download”.

How to identify the foreign individual be the taxpayer of individual income tax? How to decide the duties of tax payment?

For the foreign individual getting incomes by working in China, the duties of tax payment shall be defined according to the following standards of exit regulations:

The individual who has not the domicile in China but has been continuously or accumulatively living within China in a quarter of tax payment no more than 90 days or no more than 183 days during the period stated by the tax agreement shall pay partial tax of payment from the domestic employer within China. The salary which is paid by the foreign employer and not be taken charged by the institution and office within China shall be free of tax exemption.

The individual who has not the domicile in China but has been continuously or accumulatively living within China in a quarter of tax payment no more than 90 days or no more than 183 days but no more than 1 year during the period stated by the tax agreement shall pay tax for the income and salary paid by the enterprise or private employer during working within China and beyond China.

The income beyond China of the individual who has not the domicile in China but has been living within China for 1 year but no more than 5 years in a quarter of tax payment shall be levied the tax for the part paid the enterprise, company and other economic institutions and private person within China; wherein the part paid by the enterprise, company and other economic institutions and private person beyond China shall be applied for tax exemption, the individual who has been living in China over 5 years shall pay tax for all the incomes from the sixth year.

Which are the income of the foreigner exempted for taxation?　

The additional benefits and non-cash allowance in rational amount gained by the foreign individual shall be not brought into the range of the individual income tax so as to exempt for taxation.

At present time, the following allowances in non-cash shall be regarded as the subsidy of tax exemption and exempted for individual income taxation.

·Housing allowance                                                                           

·Food allowance and laundry charge

·Removing indemnity

·Charge of visiting relatives

·Education fee for children

·Traveling expense for official duty

These allowances shall be paid for the foreign employee in reimbursement or directly closed by the employer. No matter it shall be paid directly by the employer to the seller or paid by the employer to the seller in reimbursement, these additional bonuses shall be automatically applicable for the regulations of tax exemption. In order to gain the temporary tax exemption of the above project, the approval of the tax authority shall be gained and the rationality of the above allowances shall be proved by the suitable documents.  

The above deduction items shall be applicable for the foreigners including the overseas Chinese and compatriots from Hong Kong, Macao and Taiwan.

The salary and income of the foreign expert who is working for the project or funds providing support for the development of China shall be exempted for individual income taxation as long as meeting certain conditions. These projects are usually within the range of projects of the World Bank and the United States or the exchange projects between different governments.

How to calculate the issue of the individual living in China about 5 years but without a domicile?

According to the regulations of Article Five of Regulations on the Implementation of the Individual Income Tax Law of the People’s Republic of China, the individual who has been living in China over 5 years but without a domicile shall pay the individual income tax for all the incomes gained within China from the sixth year.

1.     About the specific calculation of five years

The individual living in China about 5 years means the individual has been continuously living in China about 5 years, namely living for 1 year in each tax year of successive 5 years.

2.      About the determination of taxation duty of the individual living in China about 5 years

 After living in China about 5 years, the individual shall pay the tax for the incomes gained within China and beyond China after each 1 year from the sixth year; for the one living less than 1 year, the individual shall only pay tax for the income within 1 year. If the individual has been living in China less than 90 days of some a tax year from the sixth year, the taxation duty shall be decided in accordance with the regulations of Article Seven of Regulations on the Implementation of the Individual Income Tax Law of the People’s Republic of China, and the calculation of five-year term shall be again made from living about 1 year.

3.      About starting date calculating the five-year term

No matter the individual has been living in China about 5 years, it shall be calculated from 1st January 1994.

 In case of any questions about tax payment, you can directly contact the Taxation Policy Division of the Sub-Bureau of Foreign Tax of the Changsha Local Taxation Bureau.

 Address: Office N5# of Changsha Local Taxation Bureau, No.1, Baisha Street, Tianxin District, Changsha City.

Tel: 85118118-6510

Bus Lines: you can take Bus No.145, No.803, or No.139 and get off at the Baishajing Stop.