If get permanent residence in China will raise personal tax?

• Although there is no working age limit for holding permanent residence in China, will there be additional personal income tax requirements after applying for permanent residence in China? This is the most inquiries we have received from foreign friends recently.

01

China's personal income tax policy

for foreigners

Personal Income Tax

According to the regulations, an individual who has a residence in China or has no residence and has resided in China for a total of 183 days in a tax year is a resident individual. Individual residents shall pay individual income tax in accordance with the provisions of this Law on their income derived from sources within and outside China.

In other words, China's individual tax law does not distinguish whether the individual is Chinese or foreign, but only the status and time of residence in China.

02

Basic requirements for applying for permanent residence in China

Permanent Residence

1

Permanent residence in China

Have resided in China for at least three years for four consecutive years.

2

Market identification category China permanent residence:

Physically reside in China for at least six months per year for four consecutive years.

3

Chinese permanent residence for husband and wife reunion:

1. Stable residence in China.

2. Have resided in China continuously for at least five years, and have resided in China for at least nine months each year.

4

Family reunion permanent residence in China:

1. Stable residence in China.

2. Have resided in China continuously for at least five years, and have resided in China for at least nine months each year.

5

Chinese permanent residence in China:

Physically reside in China for at least six months per year for four consecutive years.

6

Has a permanent residence in China:

Chinese permanent resident status holders must have resided in China for at least three months each year after obtaining a Chinese permanent resident identity card.

If there are special circumstances, with the approval of entry and exit, the cumulative residence within five years can be 1 year.

* There is no requirement for these types of residence in China: permanent residence in China for special contribution, permanent residence in China for investment personnel, permanent residence in China for parent-child reunion, permanent residence in China for Chinese doctor, etc.

Therefore, foreigners will not get permanent residence status in China, and China will impose more taxes on you!

After all, the Chinese permanent residence status is a guarantee for the stable life and development of foreigners in China, and it is the embodiment of a stable identity, which is not directly related to the increase or decrease of foreigners' personal tax.

If you need any more information, feel free to contact SOLUTIONS. We will be glad to assist you.

SOLUTIONS

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