Understanding China's New IIT Law and the Six-Year Rule: A Guide for Foreign Taxpayers

China's revised Individual Income Tax (IIT) law took effect on January 1, 2019. Following this, on March 16, 2019, China’s Ministry of Finance and the State Taxation Administration issued an announcement detailing how the tax residency of foreigners in China will be determined under the amended regulations, known as the “six-year rule.”

According to the six-year rule, foreign individuals who have no domicile but live in China for 183 days or more per calendar year are considered tax residents. If a foreign individual is a tax resident in China for over six years, they will be taxed on their global income (including income sourced outside China and paid by overseas employers).

As 2024 marks the sixth year after the implementation of the new IIT law in mainland China, foreign taxpayers should take note of the rules as they plan their tax obligations in China and abroad. A well-known loophole allows expatriates to "reset the clock" on their six-year tax residency status and avoid the additional tax by leaving the country for at least 31 consecutive days.

In this webinar, Janice Dong, International Payroll & Tax Manager, will provide a condensed session to highlight the key points expatriates should know and guide them through the process of identifying tax residency status and days for a tax residency reset. Several case studies will also be reviewed to provide real-life examples, followed by a live Q&A session.

Key Topics:

• How to identify tax residency status
• How to count a tax residency reset
• Common issues regarding the declaration of foreign income
• Examples and case studies

Agenda:

• 16:00–16:30: Sharing session
• 16:30–Onwards: Q&A

This webinar is FREE of charge.

For any questions or concerns, please contact Freda CHEN, at freda.chen@dezshira.com. We look forward to having you join us in this webinar, and answering any questions you might have on the subject.

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