The annual individual income tax settlement in China will run from March 1 to June 30.

To help you navigate the process, we've answered some of the most frequently asked questions below.

Who needs to pay individual income tax?

If you have a domicile in China or have no domicile but have resided in China for a cumulative period of 183 days within a tax year, you will be identified as a Chinese tax resident and need to pay individual income tax on income earned from within and outside the territory of China.

If you have not resided in China for a cumulative period of 183 days within a tax year, you will be identified as a non-resident individual who needs to pay individual income tax on income earned from within the territory of China.

How do I file my taxes?

Foreigners residing in China who collect employment wages, labor remuneration, royalties, and franchise fees within the tax year must file the Annual Self-declaration Form for Individual Income Tax with the tax authorities between March 1 and June 30 of the following year and settle the comprehensive income tax.

Taxpayers who wish to complete the process between March 1 and March 20 may make an appointment through the individual income tax app starting from Feb 25. Appointments are not required for filings made between March 21 and June 30.

Foreigners who are non-resident individuals are not required to settle comprehensive income tax.

Does China have double taxation agreements?

China has signed agreements to avoid double taxation with 114 countries and regions. Expats eligible for tax reductions or exemptions as stipulated in the agreements can determine whether they meet the conditions to enjoy the benefits of these treaties.

Here is a list of the countries and regions that have signed an agreement with China to prevent double taxation.

What tax benefits are available to expats?

From Jan 1, 2019 to Dec 31, 2027, expats who are Chinese tax residents may choose to enjoy special additional deductions of individual income tax or the tax-free treatment of housing subsidies, language training, and children's education fees.

Wages and salaries earned by foreign experts who meet certain conditions may be exempt from individual income tax.

For step-by-step filing guidance, click here.

For further inquiries regarding tax services, please contact Shanghai's tax hotline at 021-12366.

Source: Shanghai Municipal Tax Service of the State Taxation Administration