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Expatriate Staff Individual Income Tax Filing

In general, the extent of tax on services required to be paid by expatriates is dependent on the length of one’s residency in China. Non-PRC domiciled individuals (less than one full year of residence) are subject to IIT on income derived from services rendered in China only. To determine the income deemed to be derived in China, the total income paid in or outside of China for the month will be incorporated for apportionment. However, if a Non-PRC individual stays in China for less than 90 days (183 days for specific nationalities) they may apply for tax exemption provided that such income was not paid or borne by a Chinese establishment.

Expatriate Income Tax Filing

Expatriate employees that are not part of an exemption have to declare their revenue and pay taxes like any other Chinese citizen. There is a chance that your home country will tax your worldwide revenue; however most of the time, one can receive taxation credit in order to avoid double taxation. Unfortunately, as an expatriate employee in China you have to pay taxes. The tax rate is separated in different brackets like many Western countries, in order to receive greater tax from higher income earners.

This table shows the current tax brackets applicable to workers in China:

LehmanBrown can assist you in order to choose the right categories for your expatriate staff individual income tax filing. Furthermore, we can assist you with your employee’s home country tax filing in order to avoid them double taxation.

To make an enquiry, please contact us at enquiries@lehmanbrown.com

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