The situation: A foreigner living and working in China for more than 183 days in the tax year receives a salary from their overseas company alongside bonuses from the Chinese company.
Applicable law: Individual Income Tax Law (amended 2019): foreign residents (more than 183 days) are subject to Chinese tax on their worldwide income. The previous five-year threshold has been reduced to six consecutive years. Tax brackets: 3% to 45% on taxable income.
Typical outcome: The employee is required to file an annual tax return (March-June) through the tax authority's app, with the possibility of applying double-taxation avoidance treaties with their home country.
💰 Tax · Awareness case
Individual Income Tax for Foreigners — Who Is Liable and How to File · Yalla China
🤝 Governing law: 个人所得税法 / Individual Income Tax Law 2019
A foreigner working in China for more than 183 days a year — is their worldwide income subject to Chinese tax?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Consult a tax accountant specialising in international taxation when you start working in China. Keep precise entry and exit records to determine your tax residency accurately and avoid penalties.
🕒 Updated: 16 March 2026