ASK THE LAWYER Q: I have just started to work in China. I am employed by

游客2023-10-09  10

问题     ASK THE LAWYER
    Q: I have just started to work in China. I am employed by a Chinese company and I would like to know how do you determine tax on my salary earned in China?
    A: A foreign resident who is temporarily working in China, but who is employed by a legal entity not established in China, will normally be subject to Chinese taxation on the wages, salaries, and other remuneration(报酬) only if the employee is present in China for an total of more than 183 days in a year. However, if the foreign resident is employed permanently by a Chinese company, regardless of whether it is a domestic or foreign invested company (foreign invested companies are Chinese companies), or a representative office, the foreign resident’s salary will be treated as income originating from China and hence be subject to Chinese tax rules. Remuneration gained while performing work outside of China, which is paid by an enterprise either within China or outside of China, will be regarded as income originating from outside China. You must keep in mind that if you stay in China for more than five continual full years or become a Chinese resident, you will be generally subject to Chinese taxation on your worldwide income.

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