Must Read: How Do Expats File Tax Return in China?
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Must Read: How Do Expats File Tax Return in China?
Throughout the worldwide, many expats are willing to live and work in China. Not only is it a pleasant, attractive country to live, but also bringing more abundant opportunities and challenges, which apparently help people to build up their own career path. As China’s tax policy gets transparent, expats having jobs should pay individual income taxes in China. Let’s see the respective aspects that expats need to consider when they start to file tax return.
A
/ CHECK whether expats are resident individuals in China.
→If yes, regarding as resident individuals, who will pay taxes on their global income.
→If no, regarding as non-resident individuals, who will pay taxes based on the income earned in China.
B
/ WHAT is the scope of taxation?
→Income includes wages and salaries, remuneration for personal services, and other income resources. In addition, the starting point related to individual income tax is RMB5,000.
→Since China has cooperated with over 110 countries and regions for bilateral tax treaties and deals, like Chinese colleagues working in the same company, expats also can enjoy preferential tax subsidy and tax reduction policies, such as educational costs for children, self-education expenses, healthcare costs for major diseases, rent, etc.
→In general, filing tax return starts from 1 March to 30 June per year.
C
/ WHETHER expats need to file tax return twice?
→It is undeniable that expats should report taxation in China and in their own countries.
→In order to avoid the possibility of double taxation, expats can pay tax in one country. In the meantime, the reported tax can be deducted in other country.
D
/ METHODS to file tax return in China.
→Expats can apply tax return through their employers.
→Expats are supposed to entrust professional tax services agencies for filing tax, such as an accounting firm.
→Expats can utilize the “个人所得税” Tax App for self-declaration.
E
/ Steps: “个人所得税” Tax App
→Before starting to download “个人所得税” Tax App from App store, expats should go to the tax bureau and obtain a login code that connecting with specific identity and utilizing to register a valid account on the Tax App.
→Once receiving the login code from the tax bureau, open the Tax App and click “Personal profile” (“个人中心”) at the bottom right-hand corner.
→Click “Login/Registration” (“登录／注册”) ---> Then, click “Registration” (“注册”) at the bottom line.
→Select the first option: “大厅注册码注册.”
1st Line: enter the login code from the tax bureau.
2nd Line: select passport as the type of document.
3rd Line: enter the passport number.
4th Line: enter the full name.
5th Line: enter the nationality.
→After completing the register procedures, click “Personal Profile” (“个人中心”) ---> select the fourth option “Bank card” (“银行卡”), which can be added and linked with personal bank account.
→After linking the bank card, click “Home page” (“首页”) at the bottom line ---> click “Annual settlement of general income of individual income tax” (“综合所得年度汇算”)
---> Start to declare tax and fill in the form.
→Click next page ---> Enter “Name of employer” (“任职受雇单位”）---> Select “Competent tax authorities” (“主管税务机关”）
→Click next page ---> Add relevant information a) Labor remuneration income or other income resources besides salaries and wages can be added manually (eg: “劳务报酬” ---> “新增“）b) If expats are resident individuals in China, they need to report the special individual income tax deductions as well as other deductible expense items.
→Click next page ---> Based on the tax information entered previously, the tax payable or tax refundable is automatically calculated and displayed at the bottom line. ---> Click submit the tax declaration form (“提交申报”).
→Click “Apply for refund” (“申请退税”) or “Pay tax” (“立即缴税”) ---> Select the bank card and click “Ok” (“确认”)
→Finally, done.
Ultimately, with enhancement and development of Individual Income Tax Law, expats absolutely and gradually continue to enjoy different benefits on it. We believe that expats will select China as the second homeland where encourages them to explore self values and aspirations in the future.
Sources: Chinatax & hrone
CONTRIBUTOR
Yvonne
(AnyHelper Volunteer)
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