How much tax to pay as an expat working in CN? Benefits?

俄乌冲突，疫情反复，很多国家都出现了通货膨胀、外债高筑的经济困境，有的国家甚至宣告破产。

Due to the Russia-Ukraine conflict and the explosive COVID-19, many countries have experienced economic dilemma, such as inflation and high foreign debt. Some countries even declared bankruptcy.

image@you行世界

而中国，却在逆流而上。据国家统计局近日发布报告显示，2013年至2021年，中国国内生产总值（GDP）年均增长6.6%，高于同期世界2.6%和发展中经济体3.7%的平均增长水平；对世界经济增长的平均贡献率超过30%，居世界第一。

China, on the opposite, is going upstream. According to a recent report released by the National Bureau of Statistics, from 2013 to 2021, China’s GDP has seen growth at an average annual rate of 6.6%, higher than the average level of the world's 2.6% and developing economies' 3.7% over the same period. The average contribution to the growth of world exceeds 30%, ranking first worldwide.

这喜人的经济成绩也吸引了越来越多外国资本和人才，在中国境内任职和从事经营活动的外籍人员不断地增加。

The remarkable performance has attracted more and more foreign capital and talents, and the number of foreigners working or doing business in China is increasing.

但要记住，外国人在华工作或做生意是要依法纳税的，即所得税。

But you need to know, foreigners working or doing business in China are subject to taxation according to law, namely income tax.

外国人在华需要缴纳哪部分收入的所得税？

What part of income do foreigners need to pay tax in China?

 首先，我们要明白两个概念：居民纳税人和非居民纳税人

First, we need to understand two terms: resident taxpayer and non-resident taxpayer.

居民纳税人：在中国境内有住所，或者无住所而一个纳税年度内在中国境内居住累计满183天的个人。

Resident taxpayer: Individuals who have residence in China, or individuals who have no residence and have lived in China for 183 days in a tax year.

非居民纳税人：在中国境内无住所又不居住，或者无住所而一个纳税年度内在中国境内居住累计不满183天的个人。

Non-resident taxpayers: Individuals who do not have residence and do not reside in China, or individuals who do not have residence and reside in China for less than 183 days in a tax year.

这里的“住所”并不是说你要在中国拥有房产，而是指你是否居住在中国境内。

The "residence" here does not mean that you need to own real estate in China, but whether you live in China.

比如，美国人Alex在中国租房居住，则是“有住所”，属于居民纳税人；若A在中国工作时买了房子，但后来回国工作了，并不在中国居住，则是“无住所”，属于非居民纳税人。

For example, if Alex who is an American, rents and lives in China, then he is considered as “have residence” and is a resident taxpayer; if A buys a house while working in China, but then returns to work and does not live in China, then he then he is considered as “have no residence” and is a non-resident taxpayer.

居民纳税人从中国境内和境外取得的所得，需要缴纳个人所得税，非居民纳税人只需要缴纳从中国境内所得部分的所得税。

Resident taxpayer needs to pay individual income tax on their income from inside and outside China, while non-resident taxpayer only needs to pay income tax on the income from inside China.

纳税要缴纳多少钱呢？

How much tax is required to pay?

在中国，个税的起征点是5000元，也就是月收入未超过5000元的部分不缴税，超过5000元的部分按相应税率缴税，工资越高税率越高，纳税金额就越多。这一规定对于外籍人士也同样适用。

In China, the threshold for individual income tax is 5,000 yuan, that is, the part of monthly income that does not exceed 5,000 yuan will not be taxed, and the part that exceeds will be taxed at the corresponding tax rate. The more the income, the higher the tax rate, and the greater the tax amount. This rule also applies to foreigners.

*综合所得=工资、薪金+劳务报酬+稿酬+特许权使用费

*Total income = wages, salaries + labor remuneration + author's remuneration + royalties

计算公式 Calculation formula

应纳税额=(月度工资薪金所得-“五险一金”-专项附加扣除)×适用税率-速算扣除数

Tax payable = (monthly salary income - "five insurances and housing fund" - special additional deduction) × applicable tax rate - quick calculation deduction

外籍人士Betty月总收入为10000元，无其他扣除，那么他需要缴纳的个人所得税为(10000-5000）×10%-210=290元，其税后工资为9710元。

Betty earned a total monthly income of 10,000 yuan, and there is no other deduction, then the individual income tax she needs to pay is (10,000-5,000) × 10%-210=290 yuan, and her after-tax income is 9,710 yuan.

对于在华外国人，有哪些税收优惠？

Are there any tax benefits for expats in China?

自2022年1月1日起，外籍个人不再享受住房补贴、语言训练费、子女教育费津补贴免税优惠政策，只能按规定享受专项附加扣除。

From January 1, 2022, foreign individuals will no longer enjoy the preferential tax exemption policies for housing subsidies, language training fees, and children's education subsidies, and can only enjoy special additional deductions according to regulations.

个税专项附加扣除包括子女教育、继续教育、大病医疗、住房贷款利息、住房租金和赡养老人、3岁以下婴幼儿照护等七项专项附加扣除。

Special additional deductions for individual tax cover seven aspects, including children's education, continuing education, medical treatment for serious illnesses, housing loan interest, housing rent, support for the elderly, and care of child under 3 years old.

需要享受扣除的个人可直接在“个人所得税”APP进行信息填写进行申报。

Individuals who need to enjoy deductions can directly fill in the information in the "Individual Income Tax" APP to declare by themselves.

若同时为两国税收居民，需要双重纳税？

If you are a tax resident of two countries, do you need to pay double tax?

大多数情况下，是不需要双重纳税的。目前，中国已经和25个国际组织和区域税收组织建立了合作关系，与110个国家和地区签署了双边税收协定或安排，在一定程度上避免了对纳税人重复征税的可能性。

In most cases, double taxation can be avoided. At present, China has bonded cooperative relations with 25 international organizations and regional tax organizations, and signed bilateral tax treaties or arrangements with 110 countries and regions, avoiding the possibility of double taxation of taxpayers to a certain extent.

 

外国人在华所得一定要依法纳税，否则会被有关机关依法追究其法律责任，记录纳入信用信息系统，影响工作签证、居留许可的延期，还可能被限制出境。

Foreigners in China must pay taxes on income in accordance with the law, otherwise they will be investigated for legal responsibility by the relevant authorities, and the records will be included in the credit information system, which will affect the extension of work visas and residence permits, and the foreigner may also be restricted from leaving the country.

HACOS provides free consulting services for exit and entry and Chinese visa. 

If you want to know more about coming to China or doing business here, please contact us!